Murowa Mine's diamond production decreases

Published: 10 June 2013

PRODUCTION at Murowa Diamond Mine has decreased from 98 000 produced during the first quarter to 79 000 carats, the parent company Rio Tinto has said.

The mine's first quarter output was however higher than the corresponding period in 2012 when 66 000 carats were produced.

Murowa Mine, which is situated in the Midlands province, is a joint venture between Rio Tinto and an independent Zimbabwean-owned and listed firm, RioZim Limited (RioZim).

Last year, the mine produced 313 000 carats and is one of about six gem producers in the country.

Its first quarter output was however higher than the corresponding period last year when 66 000 carats were produced.

During the period under review, it processed ore amounting to 153 000 tonnes.

The group also reported that its total diamond output in the first quarter reached 3,236 million carats down from 3,248 million carats mined in the previous quarter.

It said this was also less than the 3,359 million carats extracted in the corresponding previous quarter.

The group added that production at Argyle Mine in Australia reached 1,990 million carats from 2,010 million carats the previous quarter.

However, Diavik Mine in Canada improved output to 1,167 million carats from 1,141 million carats mined in the last quarter of last year.

"Our operations achieved a solid performance in the first quarter," said Rio Tinto chief executive officer Mr Sam Walsh.

"A streamlined executive committee structure is now in place and some demanding targets for 2013 including for cash cost savings are locked into our performance measures. We are making good progress in achieving our cost reduction targets and other priorities for 2013, and are determined in our pursuit of greater value for shareholders," he said.

The group has announced that it may dispose some of its shares in diamond ventures.

At the moment, the diamond industry faces a lean spell largely because of the euro zone debt crisis coupled by slow Asian purchases while demand for end products continues to shrink.

As a result, rough diamond prices went down by 16 percent in 2012 with the diamond market growing by about 3 to 4 percent.

In 2011, the gemstones market achieved a 10 percent growth and this year it is anticipated to register a marginal growth.
- TC