RioZim Buys A Namibian Diamond Company

RioZim has bought Sperrgebiet Diamond Mine in Namibia as the Zimbabwean group seeks to expand in Africa.

Without disclosing the amount paid for the mine, Tawanda Andrew Chiurayi, RioZim’s group company secretary told Bloomberg News that they also want to diversify their assets. Said Chiurayi:

The group has been trying to broaden its footprint in the mining industry in Africa and this acquisition was part of the strategy.

We also want to diversify our assets and geographies.

However, people familiar with the matter who spoke to Bloomberg on condition of anonymity said that the acquisition cost US$58 million.

Sperrgebiet holds two onshore and two offshore mining licences, within Luderitz’s protected diamond zones, according to the company’s website.

Chiurayi said RioZim is also planning further investments in base and precious metals in Zimbabwe, after spending more than US$150 million at its gold mine and a new plant at the Murowa diamond mine.

He said Output at Murowa tripled in September following the investment.

RioZim, which also has interests in coal and a nickel refinery, said rules that oblige miners in Zimbabwe to switch 40 percent of their income into local currency are proving a drag on its operations.

Chiurayi said forex shortages and power shortages are seriously hampering progress, but remained hopeful that their long-term plans won’t be inhibited.

Pindula News