The ManicaPost
Samuel Kadungure Senior Reporter
GOVERNMENT has injected $80 million into Zimbabwe Consolidated Diamonds Company (ZCDC) for the acquisition of sophisticated technology as focus shifts from low-value alluvial to full-scale lucrative conglomerate and kimberlitic diamonds mining.
Prior to ZCDC formation, various mining companies in Marange were engaging in open cast operations, but the alluvial deposits have dwindled.
Government has so far advanced $25 million to ZCDC as working capital and an additional $32 million for acquisition of sophisticated mining equipment and machinery from Belarus.
ZCDC has a total of 800 000 hectares of diamond concessions, having been given special grant to extract all diamonds in the country.
In an interview on the sidelines of a visit by the Minister of State for Manicaland Provincial Affairs, Cde Mandi Chimene and officials from Mozambique’s Manica Province led by the Governor, Cde Alberto Ricardo Monhlane, Permanent Secretary in the Ministry of Mines and Mining Development, Professor Francis Gudyanga, said conglomerate mining had started in concessions previously held by Marange Resources, Mbada Diamonds and DMC.
ZCDC will soon move into other outstanding diamond concessions in Marange and Chimanimani.
“Since last year, ZCDC has been involved in a mop-up of alluvial diamonds and focus is now on conglomerate diamond mining. We are now moving into a zone with rich conglomerates, that is the ex-Mbada, Marange and DMC concessions, and the future looks very bright,” said Prof Gudyanga.
“Government, through the Reserve Bank of Zimbabwe, as of last week, had availed $80 million to capitalise ZCDC. We are optimistic that at full throttle ZCDC can meet or exceed the two million carats per year target.
“We have to be at par or exceed the previous records by other mining companies,” said Prof Gudyanga.
ZCDC Chief Executive Officer, Dr Moris Mpofu, said starting March 2017, the mining company stopped selling diamonds on rushed basis.
“Since last year when ZCDC was formed, we have been selling diamonds on rushed basis to raise working capital, but this was stopped in March 2017. RBZ has provided us with a working capital facility which allows us to continue producing diamonds. ZCDC has also adopted a stock accumulation policy from RBZ and Government which allows us to build and accumulate diamond stocks which we will tender at the right time, to the right bidder and the right price,” said Dr Mpofu.
“We were short changed in the past by selling our gems in small batches as we were forced to take low-value prices from the buyers, and this has actually prejudiced the treasury.
“The stock accumulation initiative will allow us to grow our stock and engage best buyers for high-value prices to assist Government with fiscal funding,” said Dr Mpofu, who took over the reins at ZCDC two months ago.
