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DIAMONDS – 1
Rio Tinto pledges continued support for its majority-owned Zim diamond project
 
12th February 2010
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Diversified miner Rio Tinto was positive about its Murowa diamond operation in Zimbabwe and would be continuing its support of the venture, Rio Tinto CE: diamonds and minerals Harry Kenyon-Slaney said last week.

Speaking on the sidelines of the Mining Indaba conference, Kenyon-Slaney told Mining Weekly that he would be visiting Zimbabwe shortly, where he would meet near-mine community leadership and open a clinic.

The Murowa resource, he said, had the potential to be expanded to six or seven times its current production of 263 000 ct/y.

“It’s a diamond operation that we discovered and one that has good-quality diamonds,” he added.

The 325-employee Murowa diamond mine is situated near Zvishavane, in south-central Zimbabwe.

On Zimbabwe’s political situation, Kenyon-Slaney said: “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.”

The company was also encouraged by the inclusive government’s support and consultation on mining-industry issues.

Rio Tinto has been in Zim-babwe for 50 years “and we’ve continued to support our people and the operation through that period”.

Kenyon-Slaney said the diversified mining company was also supportive of the indigenisation of Zimbabwean companies, as it was of black economic empowerment in South Africa.

Zimbabweans own 22% of Murowa through Rio- Zim, while Rio Tinto owns 78%.

According to the mine’s website, three kimberlite pipes were discovered in 2000, with mine commissioning in 2004.

It adds that large high-quality stones were recovered in the initial mining period.

Kenyon-Slaney said the diamond business globally was showing tentative signs of recovery from a very low base and that there had been an encouraging recovery in diamond prices in recent months.

Edited by: Martin Zhuwakinyu

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