Murowa Diamonds has committed $60 million in the next four years as part of its expansion and development programme to increase revenue and ramp up output, signalling its confidence in the future of the diamond sector.
STEPHEN CHADENGA
The investment comes as prices have been falling on the international markets.
Murowa board chairperson Lovemore Chihota said the company decided to take a long-term view of diamond business, hence, the decision to invest in new mining equipment that ensures sustainable operations at the mine.
He said while most diamond companies in the world were closing, Murowa was instead investing, showing a new strategy by the new shareholders (RioZim). In July last year, RioZim acquired a 78% stake in the mine following the exit of global resources giant Rio Tinto.
“As part of our long-term investment plan, this acquisition of the latest equipment will go a long way in ensuring that we are able to continue mining sustainably,” Chihota said at the unveiling of new mining equipment.
The new state-of-the-art equipment, which was unveiled on Tuesday consisted of 28 pieces ranging from excavators, dump trucks, dozers and graders. The move to invest in new equipment is meant to cut costs as in the past all equipment was owned and operated by mining contractors.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
“Besides cutting costs, we believe the investment demonstrates the company’s long-term commitment to continue mining at Mazvihwa for the foreseeable future and to further invest in the growth of the mining sector in Zimbabwe,” Chihota said.
He said over 200 jobs would be created by the new investment and that the investment ensured “security of the existing jobs and increased benefits to communities and a greater contribution to the nation’s fiscus through increased royalties and taxes.”
Murowa, which started it operations in 2004 is the only kimberlitic mine in the country with three (kimberlitic) pipes.
