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Home Markets Markets Rio Tinto to boost Zimbabwe diamond output
Rio Tinto to boost Zimbabwe diamond output PDF Print E-mail
Written by Will Peters   
Monday, 08 February 2010 12:57

Diversified miner says diamond output from their Murowa mine in Zimbabwe could be boosted 7 fold. Rio Tinto apparently unfazed by woes besetting ACR on their Marange claim.

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Rio Tinto (LON:RIO) is set to invest some US$200 million into their Zimbabwean diamond operations.

Rio Tinto made the announcement after saying they will seek to boost production by 7 fold.

Speaking at a mining conference in South Africa, Rio Tinto diamonds and minerals chief executive officer (CEO), Harry Kenyon-Slaney, pledged his support for the project and said the company would continue to support the Zimbabwe operation.

"It's a diamond operation that we discovered and one that has good quality diamonds," Kenyon-Slaney said.

Murowa’s production fell 53 percent to 97,000 carats in 2009, according to a recent Rio Tinto report.

The group holds a 78 percent stake in the operation.

The Rio Tinto boss said the resource at Murowa provided capacity to increase production by up to seven times.

"We are encouraged by the progress made by the inclusive government over the last year and the improvement in the socioeconomic environment of the country," Kenyon-Slaney said.

The group is expanding operations at the mine in an exercise expected to cost about US$200 million.

The Rio boss also commended the progress made by the country’s coalition government in improving the operating environment for investors.

Diamonds are currently a hot topic in Zimbabwe, however much of the focus has recently been falling on the Marage diamond fields located in the eastern province of Manicaland.

African Consolidated Resources (LON:AFCR), the London listed company that discovered diamonds in the area, has been fighting a protracted battle with the government in the countries courts after being thrown off the claim in 2007.

The Kimberley Process is also yet to back diamonds coming out of the area until humanitarian concerns are dealt with.

Diamond resources at Murowa were discovered in 1997 and the mine, which now employs 325 people, was commissioned in 2004.

Rio Tinto has to date operated unhindered on the claim.


Last Updated ( Monday, 08 February 2010 13:00 )