eBusiness Weekly
BH24 Reporter
State-owned diamond mining firm, Zimbabwe Consolidated Diamond Company (ZCDC), plans to conduct an Environmental Impact Assessment (EIA) study of diamond exploration in the Chihota, Marondera District.
In a statement on Friday the state owned miner said the EIA would be done in fulfillment of the requirements of the Environmental Management Act.
“Zimbabwe Consolidated Diamond Company (ZCDC) intends to carryout mineral exploration in Chihota Communal Lands in Marondera District.
“According to the Environmental Management Act (Cap 20:27), this development requires that an Environmental Impact Assessment (EIA) be carried out. As such ZCDC contracted the Scientific and Industrial Research and Development Centre (SIRDC) to conduct an EIA for the diamond exploration project,” read part of the statement.
ZCDC CE Dr Moris Mpofu is on record saying by 2022, the country’s sole authorized diamond mining company would have invested US$400 million towards ramping up production to about 10 million carats annually.
This also follows reports that ZCDC was targeting to spend about $200 million in 2018 with the bulk of it channeled towards a comprehensive exploration as well as opening additional mines, among other key priority areas.
Last year, the diamond mining industry had projected diamond output of 3,5 million carats compared to 1,6 million carats in 2017.
ZCDC extracted 2,4 million carats between January and October 2018, from the 1,8 million carats achieved the prior year.
The State miner says it is committed to enhancing shareholder value through investing in discovering new reserves.
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 the 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 last year.
In its first production year, ZCDC hauled 961 000 carats from speculative alluvial mining and tailings dumps processing, before doubling output to 1,8 million carats in 2017 driven by investment in mobile crushing equipment to enhance conglomerate processing capacity while the fixed 450 tonne per hour plant was being installed. Government capitalised ZCDC to the tune of $80 million in 2017, through treasury instruments.
