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Mr Ridge Nyashanu

Oliver Kazunga, Senior Business Reporter
THE State-owned Zimbabwe Consolidated Diamond Company (ZCDC) is in discussions with local banks to secure about $300 million credit lines to finance the purchase of mining equipment and expansion of its operations.

ZCDC was formed last year following the shutting down of mining operations for seven companies by the Government in the Marange fields over concerns that the miners were misappropriating revenue from the gemstones.

President Mugabe has revealed that an estimated $15 billion could have been looted from Marange diamond operations with the country only realising less than $2 billion. It is envisaged that the Government would consolidate the mining firms’ assets and operations into ZCDC.

Some of the mines which were shutdown among them Anjin, which the Government wanted to take up 50 percent shareholding in ZCDC, have taken the legal route to contest the asset seizure.

According to an online publication, The Source, ZCDC chief executive Mr Ridge Nyashanu said the consolidated diamonds mining operation was seeking $300 million to secure mining equipment of its own as the firm did not have any.

“Going forward, we are looking at recapitalising and the total cost required would come up to about $300 million.

“We have been in talks with local banks and other private finance houses and the negotiations are quite encouraging. We should be able to come up with an arrangement soon,” he was quoted as saying.

Last year, ZCDC secured a $30 million facility from the Reserve Bank of Zimbabwe for the purchase of equipment from Belarus.

To ensure transparency and accountability in the production of diamonds, Finance Minister Patrick Chinamasa has said figures from the gemstones mining would be regularly made available to the public.

In addition, ZCDC would be required to produce audited financial accounts to deter the possibility of fraud in its activities. — The Source/Business Chronicle