Chiadzwa diamonds future bright

02 Jun, 2017 - 00:06 0 Views
Chiadzwa  diamonds  future bright

The ManicaPost

Samuel Kadungure Senior Reporter
THE new equipment being imported from Belarus by the Zimbabwe Consolidated Diamond Company Private Limited is expected to improve efficiencies at Chiadzwa and transform the diamond sector into a critical driver of economic growth.

The optimism follows arrival of two more batches of heavy equipment — with the third one expected by Wednesday — which upon installation is expected to shore diamond mining operations and contribution to the country’s long term sustainable development thrust.

The first batch of the equipment comprising of seven dump trucks arrived in Mutare last week on Tuesday and the second, including three mining dump trucks arrived in Mutare on Monday. Another batch was still to arrive at the time of going to Press. ZCDC will receive a total of 21 dump trucks and five dozers under the $32 million Reserve Bank of Zimbabwe facility for acquisition of sophisticated mining equipment and machinery as focus at Chiadzwa shifts from low-value alluvial to full-scale lucrative conglomerate and kimberlitic diamonds mining.

ZCDC chief executive officer, Dr Moris Mpofu, said all the equipment and sophisticated technology would be in the country before the end of year. “The second batch of the equipment, comprising of dump trucks has arrived in the country, but it is yet to be installed. When the entire consignment is in the country and installed, we will expect significant mining operations at Chiadzwa as we have been depending on contract mining.

“The shift from contract mining to own mining capacity will bring efficiency and increase production capacity. The dump truck will be complemented by excavation, which we are importing and between the next three months and end of the year you will be seeing more equipment coming into the country,” said Dr Mpofu.

The mining sector has been one of the most critical drivers of economic growth over the last years, contributing more than 60 percent of total exports but there were strong concerns that the country did not secure fair compensation for its mineral wealth at Chiadzwa due to inadequate regulation and lack of transparency by previous miners.

Chiadzwa’s alluvial resources have already been exploited and kimberlites are more capital intensive to produce. RBZ has also injected $25 million working capital into ZCDC to allow it to continue producing diamonds, over and above the $32 million for acquisition of sophisticated mining equipment and machinery.

ZCDC has also adopted a stock accumulation policy from RBZ and Government through which allows it to build and accumulate diamond stocks for tender at competitive prices on the global market. Conglomerate mining has started in concessions previously held by Marange Resources, Mbada Diamonds and DMC and ZCDC will soon be moving into other outstanding diamond concessions in Marange and Chimanimani.

Prior to ZCDC formation, various mining companies in Marange were engaging in open cast operations, but the alluvial deposits have dwindled. ZCDC has a total of 800 000 hectares of diamond concessions, having been given special grant to extract all diamonds in the country.

Share This:

Sponsored Links

We value your opinion! Take a moment to complete our survey

This will close in 20 seconds