State Owned ZMDC Claims It Made $1.6 Million Profit From Diamonds Between 2009-2014, After Revenues of $1.6 Billion, Blames Former Minister
State-owned mining company the Zimbabwe Mining Development Corporation (ZMDC) has told the Parliamentary Portfolio Committee on Mines and Energy that it made profits of only $1.6 million in the six years between 2009 and 2014. The ZMDC said that the $1.6 million was what remained after receiving revenues of $1.6 billion after producing 23.2 million carats of diamonds. The company blamed former minister of Mines and Mining Development Walter Chidhakwa for frustrating its business activities.
Luke Akino, the acting general manager for ZMDC, told the portfolio committee,
Between 2009 and 2014, ZMDC produced 23.2 million carats of diamonds. Revenue stood at $1.6 billion at a cost of $1.5 billion with a profit of $1.6 million.
…Over the period (2009-2014), diamond production was declining. Joint venture partners were asking for more ground to pursue alluvial mining, but that was resisted, so there was no option to turn to consolidation.
ZMDC board chairperson, David Murangari, added:
We had an unfortunate situation were control rested with the Minister of Mines.
However, the ZMDC did not make provide details of why the expenses were so high that reached $1.5 billion.
The portfolio committee which is chaired by Norton Legislator Temba Mliswa is investigating the disappearance of an alleged $15 billion in diamond revenues, although former Mines Minister Obert Mpofu refused to cooperate when he appeared before the committee.
More: Financial Gazette
