Share

Rio's Zimbabwe diamond output surges

Harare - Diamond output at Rio Tinto’s Zimbabwe unit more than doubled to 324 000 carats last year, the local minority shareholder in the venture said on Friday.

RioZim Limited, which holds a 22% stake in the Murowa mine in southern Zimbabwe, said in a statement production rose to 324 000 carats from 141 000 in 2010. It did not give further details.

Murowa is planning a $300m expansion to lift output to 1.8 million carats but has delayed the project due to a law that seeks to force foreign-owned firms, including mines, to cede 51% shares to locals. Rio Tinto controls 78%.

Rio Tinto told Zimbabwe’s government last October that it had agreed to give up 51% stake in Murowa to comply with the economic empowerment law.

The heavily criticised law is aimed mainly at mining firms and banks operating in the resource-rich country, which is in a fragile recovery after a decade of contraction.

Rio Tinto, the world’s third-largest miner, effectively invited bids on Tuesday for its diamond business, including the Zimbabwean operation, and joined BHP Billiton in a retreat from an industry that has lost its sparkle for mining majors.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.07
-0.9%
Rand - Pound
24.07
-0.7%
Rand - Euro
20.56
-0.5%
Rand - Aus dollar
12.37
-0.2%
Rand - Yen
0.13
-0.8%
Platinum
899.20
+0.3%
Palladium
999.25
-0.3%
Gold
2,210.66
+0.7%
Silver
24.56
-0.4%
Brent Crude
86.09
-0.2%
Top 40
68,080
+0.6%
All Share
74,278
+0.5%
Resource 10
56,967
+2.4%
Industrial 25
103,572
+0.3%
Financial 15
16,456
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders