Marange gem miner in ‘survival mode’

via Marange gem miner in ‘survival mode’ 10/03/2014 NewZimbabwe

CHINESE firm, Anjin Investments, has revealed it was struggling to keep its operations running due to falling ore grades and recoveries at its diamond concession in the Marange gem fields.

Anjin director Retired Brigadier Munyaradzi Machacha said the company was literally in “survival mode” despite investing more than US$400 million into its operations in Zimbabwe.

“Right now the company is in survival mode. We are really in serious financial problems and our primary objective at the moment is to make sure that the company survives,” he said.

“Our resources have dwindled, our revenues are down. The ore we are mining we are recovering the low grade diamonds which are not fetching much on the market in terms of prices. Our prices are probably the lowest in the Marange area.”

Anjin has produced 7, 8 million carats of diamonds since it started operations in 2010 with 6,8 million carats sold to date.

At peak production in 2011, the company produced 350,000 carats. It has capacity to process 12,000 tons of ore per day.

Finance Manager, Shingirai Manyeruke said last year the company only managed to conduct two auctions.

Anjin is a joint venture between China’s Anhui Foreign Economic Construction Company Limited and the Zimbabwe Mining Development Corporation.

The China/Zimbabwe joint venture started mining diamonds at Marange in July 2010, but received permission recently from the Kimberley Process to export its rough diamonds.