Zim’s Murowa diamond output plummets

HARARE – Zimbabwe’s Murowa diamond mine recorded a 63 per cent dip in production in the first half of 2007 due to frequent power cuts and failure to expand mining operations, its majority owner said on Friday.

Murowa, majority owned by Britain-based Rio Tinto Plc, produced 46 211 carats in the first six months of 2007, compared to 126 000 carats in the same period last year, according to a statement issued to shareholders. “The anticipated decrease in grade with depth and the delay in the implementation of the expansion project has caused this fall in production compared to the same period last year,” Rio said, adding that regular power outages had further affected mining operations.Rio Tinto has a 78 per cent stake in the mine, with the remainder owned by locally listed RioZim.Rio Tinto has stated its intentions to inject US$200 million into the mine to raise production, but seeks assurances over its investment after President Robert Mugabe’s government announced plans to localise control of all local mines.Mugabe’s government has tabled an empowerment bill that seeks to transfer control of all firms, including foreign-owned mines and banks, to black Zimbabweans.Last year, RioZim chairman Eric Kahari warned that without the expansion, the mine could start winding down from 2009.Along with Rio Tinto, Anglo Platinum, the world’s largest platinum miner, number two Implats and Aquarius Platinum are all major foreign miners with interests in Zimbabwe.The mining industry has overtaken agriculture as the largest employer in Zimbabwe, accounting for about four per cent of gross domestic product and contributing over 40 per cent of all foreign currency inflows into the country.Nampa-Reuters”The anticipated decrease in grade with depth and the delay in the implementation of the expansion project has caused this fall in production compared to the same period last year,” Rio said, adding that regular power outages had further affected mining operations.Rio Tinto has a 78 per cent stake in the mine, with the remainder owned by locally listed RioZim.Rio Tinto has stated its intentions to inject US$200 million into the mine to raise production, but seeks assurances over its investment after President Robert Mugabe’s government announced plans to localise control of all local mines.Mugabe’s government has tabled an empowerment bill that seeks to transfer control of all firms, including foreign-owned mines and banks, to black Zimbabweans.Last year, RioZim chairman Eric Kahari warned that without the expansion, the mine could start winding down from 2009.Along with Rio Tinto, Anglo Platinum, the world’s largest platinum miner, number two Implats and Aquarius Platinum are all major foreign miners with interests in Zimbabwe.The mining industry has overtaken agriculture as the largest employer in Zimbabwe, accounting for about four per cent of gross domestic product and contributing over 40 per cent of all foreign currency inflows into the country.Nampa-Reuters