Maravi

(SUNDAY MAIL ZW) Diamonds rake in US$1 billion

Diamonds rake in US$1 billion
Sunday, 16 December 2012 00:00
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Sunday Mail Reporter

Zimbabwe has raised more than US$1,2 billion from the export of diamonds extracted in Marange over the past three years. Speaking at the Zimbabwe Mining Development Corporation (ZMDC) end-of-year dinner in Harare on Friday, the Secretary for Mines and Mining Development, Mr Prince Mupazviriho, said the four mining companies operating at the fields accounted for the exports.

He said of this revenue, US$107,8 million comprised royalties; US$172, 1 million dividends and US$77,9 million corporate taxes. He said the diamond exports transformed the ZMDC from a loss-making into a profitable parastatal.

The parastatal has a 50 percent stake in all the four companies — Mbada Diamonds, Anjin Mining Investments, Marange Resources and Diamond Mining Corporation. Mr Mupazviriho added that mining is set to help stimulate economic growth as the sector is expected to grow by 17 percent next year.

“For the first time, ZMDC started declaring a dividend to the shareholder in 2009. As I stand here today, I am proud to announce that the projected mining growth for 2012 was 10,1 percent and is projected to grow to 17,1 percent in 2013,” he said.

“This shows that the mining sector is driving the economic growth of Zimbabwe. Economic growth for 2012 is 4,4 percent and the projections for 2013 are at 5 percent.

“This shows that the sectoral growth in mining is five times higher than the economic growth of the country.”

Speaking at the same occasion, ZMDC general manager Mr Jerry Ndlovu said his institution will begin restructuring next year.

“In this regard, in 2013, we shall embark on a massive and extensive rebranding exercise that will see us unveil a new corporate identity.

“I am humbled to say ZMDC has transformed into one of the biggest mining houses in the country.”

Mr Ndlovu said diamond production in Marange decreased because mining at the fields shifted from alluvial to conglomerate.

“The diamond production figures from Marange and Mbada in 2011 show a decrease in production as the mines moved from alluvial mining to conglomerate mining.

“Two diamond companies, Anjin Mining Investments and Diamond Mining Corporation, were Kimberly Process Certified in 2011 and started selling in 2012, realising an increase in diamond production from 4, 502 739 in 2011 to 11 934, 000 in 2012.”

He said the ZMDC has a “healthy balance sheet” and expanded its portfolio.

“In terms of investment, ZMDC has managed to sign six agreements in gold and diamonds exploration and development. Of the six, one is a shareholders’ agreement for platinum.

In an effort to fulfill the same mandate, a total of 18 non-disclosed agreements for exploration and development in gold, diamonds, tintantalite and copper have been signed this year.”

Labels: DIAMONDS, PRINCE MUPAZVIRIHO

posted by MrK @ 6:15 PM