Zimbabwe: Murowa Diamond Output Dips

Diamond production at Murowa Mine decreased from 98 000 produced during the first quarter to 79 000 carats, parent company Rio Tinto reported on Tuesday.

Murowa, located near Zvishavane in the Midlands province, is a 78 and 22 percent partnership between Rio Tinto and RioZim Limited (RioZim), an independent Zimbabwean-owned and listed company.

The mine, which produced 313 000 carats last year, is one of about six diamond mines operating in Zimbabwe.

Murowa's first quarter output was, however, higher than the corresponding period last year when 66 000 carats were produced. Ore processed during the period under review reached 153 000 tonnes.

Meanwhile, Rio Tinto said total diamond output for the whole group during the first quarter reached 3,236 million carats down from 3,248 million carats mined in the previous quarter. This was also lower than the 3,359 million carats mined in the corresponding quarter last year.

Output at Argyle Mine in Australia reached 1,990 million carats from 2,010 million carats the previous quarter while the Diavik Mine in Canada increased output to 1,167 million carats from 1,141 million carats mined in the last quarter of 2012.

"Our operations achieved a solid performance in the first quarter," said RioTinto chief executive officer Sam Walsh.

"A streamlined executive committee structure is now in place and some demanding targets for 2013 including cash cost savings are locked into our performance measures. We are making good progress in achieving our cost reduction targets and other priorities for 2013, and are determined in our pursuit of greater value for shareholders." RioTinto has said that it may dispose some of its shares in diamond ventures.

The diamond industry is currently going through a lean spell mainly due to the eurozone debt crisis coupled with slowing Asian purchases while demand for end products continues to decline.

This led rough diamond prices to slump 16 percent last year with the diamond market growing by about 3 to 4 percent compared with growth of 10 percent in 2011 while in 2013 it is expected to register marginal growth again.

Industry experts, however, expect a rebound in prices this year following an announcement by De Beers, the world's largest diamond producer, late last year that it was going to constrain supply in 2013.

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