Mbada eyes kimberlite gems

Bus3Business Editor
MBADA Diamonds plans to invest heavily into its Marange operations this year as it moves to exploit the conglomerate and highly priced but deep seated kimberlite gems.The development comes at a time the company announced its revenues had surpassed the $1 billion mark since commencing operations four years ago.

“From 2014 onwards the corporate intends to invest heavily into mining conglomerate and deep seated kimberlitic material which is projected to bring more revenue compared to alluvial mining which is on the decline,” said Mbada Diamonds in a trading update released on Monday.

“This new phase of mining will require extensive capital outlay, which is the corporate’s primary objective from 2014 onwards.”
Mbada, – which is one of seven diamond mining companies in Chiadzwa – is a 50-50 venture between the Zimbabwe Mining Development

Corporation and New Reclamation Group’s Grandwell Holdings of South Africa.

Since commencing operations, Mbada has spent $214,5 million on capital expenditure with direct production related expenditure totalling $225,6 million.

“We wish to share our $1 billion landmark achievement with our employees and stakeholders and to assure all that our intention is to bring positive development to our country and to thank those who have rendered us the support,” said Mbada.

The government has so far received $424 million in the form of taxes, dividends and advances. Close to $40 million went towards corporate social responsibility activities.

As a result of the non-performance of most diamond companies in Marange, there have been calls for the government to set up one company that would exploit the gems in a transparent and accountable manner for the benefit of the nation.

Despite recording success, Mbada said the company’s operations had been hampered by a “hostile global environment” and the economic environment.

Company’s chairman Robert Mhlanga a fortnight ago told the parliamentary committee on Youth, Indigenisation and Economic Empowerment that the country should set up its own diamond centre instead of selling the gems at Belgium’s Antwerp World Diamond Centre.

He said the country was losing a lot of revenues through the payment of commissions.

“I have strong reservations about Antwerp because they are our yesteryear enemies. We have actually reeled under sanctions, thanks to Brussels because they have claimed to have lifted sanctions and we run to them. Personally, I have my own reservations,” Mhlanga was quoted as having said.

Under its corporate social responsibility the company has renovated schools, equipped them with furniture, textbooks and uniforms in addition to a scholarship fund that benefits bright students from poor backgrounds.

The company has also provided farming inputs to families that were relocated during its mining operations and provided training in collaboration with the Zimbabwe Farmers Union.

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