Diamond Company recapitalising

20 Jan, 2017 - 00:01 0 Views
Diamond Company recapitalising

The ManicaPost

Cletus Mushanawani News Editor —
ZIMBABWE Consolidated Diamond Company produced 953 818 carats of diamonds from April to December last year, with prices per carat ranging between $33 and $53.

Speaking during a tour of Chiadzwa by the Parliament Portfolio Committee on Mining and Energy last Friday, ZCDC acting chief executive officer, Dr Ridge Nyashanu, said the 100 percent Government-owned company had embarked on a four-phased recapitalisation programme aimed at increasing productivity.

“As a company we want to capitalise to resuscitate mobile equipment and upgrade the fixed plant. We want to ensure efficiency all year round,” he said.

Dr Nyashanu said ZCDC had reached an agreement with the Russian-owned DTZ-OZGEO to buy their assets and commence mining in Chimanimani.

“Our aim is to bring the DTZ start-up and expand production to 600 tonnes per hour by July 2017. We also want to refurbish the Mbada Diamonds fixed plant as well as set up mining and processing facilities for conglomerate at Portal B and the concession once owned by Jinan by May 2017,” he said.

So far ZCDC has managed to buy earth moving equipment worth $30 million from Belarus through a facility availed by the Reserve Bank of Zimbabwe. They also managed to buy Mbada equipment and plant for $7,5 million through the recently held auction.

Dr Nyashanu told the parliamentarians that it was important to consolidate the diamond mining companies to curb under-declaring of sales which was rampant before Government’s bold decision to stop all mining operations at Chiadzwa last year.

“When you look at Mbada, it had the highest gem and concentration, but what leaves a lot to be desired is what happened, which resulted in them having an average of $23 per carat. Anjin, their average price per carat was $44, Diamond Mining Company $44, 66, DTZ0-OZGEO $49,42, Jinan $89 and Marange $67,60. Despite having the highest gem concentration, Mbada was the worst performer.

“To me, probably, it is good reason for consolidation. You need transparency and you need to monitor what happens to your diamonds,” said Dr Nyashanu.

The company which took a stick from the Minister of Information, Media and Broadcasting Services who is also Member of National Assembly for Mutare West, Dr Chris Mushohwe for paying lip-service to corporate social responsibility programmes, said on employment of locals, a database had been created and certain positions would be from the local community.

“Our aim is to enhance our social licence to operate as a welcome visitor to the community. We will support the local community in the best way we can. We will purchase some of our canteen supplies from the local community like vegetables, chickens and other horticultural produce. We will provide water tapes along the pipeline for villagers’ animals and the gardens. We will also avail education support for the underprivileged, support for economic projects, clinics, provide clean water for the community and rehabilitate various shared community amenities,” said Dr Nyashanu.

The company also pledged to embark on a massive land rehabilitation programme as abandoned gullies are now a common sight in Chiadzwa.

The poor road network in Chiadzwa has been a cause of concern for the locals and any visitor and ZCDC has pledged to rehabilitate the bumpy roads.

Speaking during the same tour, Dr Mushohwe, said the Marange community had nothing to show for the mining that has been happening in the area for the past 10 years. When companies started mining here, people in this area expected a lot because of the promises that were made. We expected that they would construct roads, build clinics and schools. But since the mining started, there is not even one classroom block that they have constructed.

“In fact, there was a primary school that was closed, and pupils there in Grade Zero and Grade One walk for about six kilometres to the nearest school. The community here is no longer interested in pledges without action.

“We are happy that Government took the decision not to renew the other mines’ grants, but we want the new company (ZCDC) to prove that they are a Zimbabwean-owned company that cares for its people. My plea to ZCDC is, please start with clinics in this area as a matter of urgency. At the moment, people who are still in Marange are just inhaling dust from the mining operations, yet they have no clinic to go to for medical attention when they get sick from the dust,’’ said the minister.

He added that what was important now was for ZCDC to help families in Marange area regardless of production because these people had no source of livelihood.

“They have suffered enough. We are no longer interested in promises that are never fulfilled,” said Dr Mushohwe.

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