Africa Moyo Senior Business Reporter
The Zimbabwe Consolidated Diamond Company (ZCDC) has been shining both underground — where it mined almost 2,4 million carats in the first 10 months to October — and on the surface where it ploughed over $7 million back into community development.
ZCDC chief executive officer Dr Moris Mpofu told Business Weekly in emailed responses that of the $7 million, the Marange Zimunya Community Share Ownership Trust got $5 million.
“In 2018, ZCDC has invested over $7 million in sustainable corporate social investment projects; this includes an investment of $5 million in the Marange Zimunya Community Share Ownership Trust,” said Dr Mpofu.
“ZCDC subscribes to sustainable mining standards, which aim to ensure that there is sustainable co-existence of operations and the environment in which the mining operations are carried out.
“In this regard, the State miner has embarked on its post environmental rehabilitation agriculture (PERA) projects. A tree plantation with over 2 000 trees has been planted in rehabilitated land while horticulture projects along a 20km water pipeline will be funded and supported to feed into ZCDC’s food supply.”
The company is also setting up fisheries on rehabilitated slimes dams and reconstructed dams to ensure. Dr Mpofu said Corporate Social Responsibility (CSR) forms part of a pivotal role in ZCDC’s strategic business thrust.
The company has so far funded numerous projects in line with its three-tier CSR policy, which takes a multi-stakeholder approach to corporate social investment. To date the company has invested in sustainable enterprise development projects which are aimed at empowering the local community and fostering growth within the province and the nation at large.
ZCDC is also focusing on contributing towards ‘‘Vision 2030’’, which seeks to transform Zimbabwe into a middle income economy by 2030 through employment creation, foreign currency generation, contribution to the fiscus and GDP, investment in infrastructure and sustainable local enterprise development initiatives.
The State miner says it is committed to generating and enhancing shareholder value as it explores the unexplored diamond resources across the country.
ZCDC was set up in 2016 after Government decided against renewing operating licences for six diamond miners; Diamonds, Anjin, Jinan, Kusena, Gye Nyame and DMC.
Marange Resources, whose majority shareholding was owned by Government, survived the chop. ZCDC has since invested over $100 million covering exploration, mining, processing, cleaning, valuation and sales of rough diamonds.
The State-owned firm’s balance sheet has now grown from $45 million in 2016 to over $250 million by September this year. In its first production year, ZCDC hauled 961 000 carats from speculative alluvial mining and tailings dumps processing, before doubling the output to 1,8 million carats last year driven by the investment in mobile crushing equipment to enhance conglomerate processing capacity while the fixed 450 tonne per hour plant was being installed.
Last year, Government capitalised the firm to the tune of $80 million through treasury instruments, resulting in organisational stability, investment in business growth and mining sustainability.