$60m shot in the arm for Murowa

via $60m shot in the arm for Murowa | The Herald January 27, 2016

RioZim Group Limited has breathed life into Murowa Diamonds Mine after injecting cash to the tune of $60 million.

The money will be released over a period of four years.

Yesterday the Zvishavane-based diamond mine also received open-cast mining equipment worth $6 million.

RioZim unveiled the equipment at the mine.

The Zimbabwe Stock Exchange-listed entity assumed full control of the mine after Canada-based Rio Tinto relinquished its 78 percent stake in the company before exiting Zimbabwe last year.

In the last seven months after taking over operations of the mine, RioZim Limited has been working on breathing life back into Murowa Diamonds Mine.

The investment, deeply rooted in the peace and tranquillity existing in the country, has also seen 200 employees being engaged.

The mine’s board chairperson, Mr Lovemore Chihota, said at the equipment unveiling ceremony that they partnered with investors who shared the same vision with the Zvishavane diamond company.

He said their partners valued the prevailing investor-friendly environment in Zimbabwe.

Mr Chihota said they had since altered direction set by Rio Tinto to maximise on the mine. “Today we are gathered here for the unveiling of the mining equipment. Our investors are pouring in $60 million in the next four years towards buying mining equipment as we anticipate growth in the diamond sector,” he said.

Mr Chihota said there was great potential in Zimbabwe and the diamond mining industry in particular.

He said while other diamond companies all over the world were closing, Rio Zim was preparing for the future through its Zvishavane investment.

“We are projecting growth and we are going to further develop the mine. We are investing because the shareholder believes there is a bright future for the mine and the country. Even when diamond prices plummet in the world, we see light. Prices will increase one day. ‘’

Mr Chihota said the new machinery consists of 28 pieces of equipment which include excavators, dump trucks, dozers and graders.