Zimbabwe (2) -- Analyses -- 2010

More about the expansion

01.06.2010

"We have reinvigorated our feasibility study for a major expansion. The expansion will increase production by a factor of six to seven times and double jobs," Neils Kristensen, the chief executive officer (CEO) of Murowa, told Reuters. He added that the program would push the mine’s annual capacity to 1.8 million carats of predominantly gem-quality diamonds. Production at the mine fell 53 percent year over year to 124,422 carats in 2009. Murowa has commissioned a review of the expansion feasibility study, which is expected to be completed by the end of the year, while Kristensen noted that the project would likely take effect in the medium term. "We're looking at up to $300 million for which we would put up an investment proposal to both shareholders and get approval for what should be a fairly big expansion," he said. Kristensen declined to comment further on last week’s government’s ban of all diamond exports, which is effective until the Kimberley Process (KP) certifies stones from Marange, according to Reuters. He told the news agency on Friday that he was disappointed that Murowa had been drawn into the issue. Rio Tinto owns 78 percent of Murowa with RioZim, a local independent company, holding the remaining stake.

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