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Murowa can boost output six times: Rio Tinto

 

06/02/2010 00:00:00
by
 
Progress ... Murowa diamond mine
 
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GLOBAL mining group, Rio Tinto says there is scope for a six-fold increase in production at its Murowa diamond mine which is currently producing about 263 000 carats a year.

Speaking at a mining conference in South Africa, Rio Tinto diamonds and minerals Chief Executive, Harry Kenyon-Slaney who was due to visit Zimbabwe during the week said the company was positive about Murowa’s prospects and would continue to support the operation.

Rio Tinto has a 78 percent interest in the Mine which is located in the Midlands town of Zvishavane with locals controlling the other 22 percent through Rio Zim which is listed on the Zimbabwe Stock Exchange (ZSE).

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

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

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

"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.

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



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