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Clifford Farai Mutevhe Correspondent
When diamond mining started in Chiadzwa, the mining operations went for quick wins, hence alluvial diamond which has low processing costs was targeted. High grade areas were also targeted in order to recoup investment. As the high grades might have dwindled, it is important that Zimbabwe Consolidated Diamond Company increases the capacity of mining and processing in order to maintain and or improve diamond output. It’s also important that they start to invest in conglomerate diamond whose grades are indicated as better than alluvial.
Geological evaluation of diamonds involves extensive bulk sampling and the processing of the samples in a diamond processing plant. A proper geological model can then be generated indicating resource characteristics like resource grade, depth, resource value and average diamond size in resource. The mining team would then use the geological model to design an open cast operation.
It is important to take note that the Chiadzwa diamond fields have not received adequate geological investigation. This means that no proper production estimate can be quoted by ZCDC either current or in future. There is need to invest in extensive geological valuation of the deposit and guarantee the Government future potential revenues from diamond mining. Previous indications of deposit value of 800 billion dollars cannot be independently substantiated.
To ensure that a diamond area is secured, the diamond fields have to be fenced off using high security fence. All the people living within the designated diamond area will have to be relocated. Surveillance cameras have to be installed within the diamond field. The cameras are further enhanced by security patrols around the perimeter fence including inside the diamond fields. The Chiadzwa diamond fields are yet to be properly secured to ensure security of diamonds. Current fencing was in isolated places where mining was happening instead of the whole 70km land stretch. Reported cases of people being found with diamond stones are indicative of the security challenges within the diamond fields. Some reports have indicated daily arrests of villagers suspected of diamond mining.
The fenced off diamond area can be converted to a game reserve. This would assist to generate tourism related activities when diamond mining has reached its end of life.
The mining of diamonds in Chiadzwa has meant that villages within the mining areas be relocated. It is important that affected villagers be fairly compensated. In order to get buy in from communities, ZCDC needs to invest in social programmes. The programmes can include building schools, clinics, putting up irrigation infrastructure or sponsoring sporting teams. Community buy in is key for any mining company, so that the local community can participate and support the mining programmes. In the ZCDC case, local communities if in support of mining programmes can act as informants for any potential illegal mining activities within the government mining claims.
The marketing of diamonds in Zimbabwe is carried out by Minerals Marketing Corporation of Zimbabwe (MMCZ). The diamonds are sorted, evaluated and then values assigned to the diamond parcel before being sold at an auction. In the marketing of diamond, aggressive marketing is key to attracting sufficiently large numbers of buyers for diamond auction. MMCZ and ZCDC should invest in marketing of the Zimbabwean diamonds to the international community. A high selling point for the Zimbabwean diamond is the size of stone estimated at four carats per stone. This has a major bearing in attracting good revenue if properly marketed. The partnership between Aurex and ZCDC in the polishing of diamond is indeed a major step in enhancing diamond value.
ZCDC being the ‘new mining kid’, its financial muscle is weak.
Clifford Farai Mutevhe is a technical services manager at one of the country’s platinum mining companies. He however writes in his personal capacity To improve its production capacity, there is need for the company to engage in contract mining and processing rather than borrowings to finance capital projects. Contract mining and processing is the quickest way that ZCDC can increase its production capacity.
The nature of the contract could include all activities requiring capital resources like drilling, blasting, hauling and processing. Contract mining has its legal challenges and it’s important that ZCDC draws up a list of critical success factors with the contractor. Critical success factors can include but not limited to grade control, Safety Health and Environment, people management, production costs, production output and productivity. Other options for ZCDC would be leasing of mining and processing equipment. ZCDC can also engage in private partnership, but with ZCDC maintaining management control.
The hope of Zimbabwe is heavily anchored on improved production of diamonds. It’s important that right things be done first. The issues of geological evaluation of the huge alluvial and conglomerate deposit, security of diamond fields and the current idle plant capacity from former miners need to be addressed to improve diamond output. ZCDC needs also to consider options of bringing additional plant capacity to improve diamond production. Contract mining and processing or even leasing can be considered to bring in additional capacity in order that the targeted production output as set by Government is met.
Clifford Farai Mutevhe is a technical services manager at one of the country’s platinum mining companies. He however writes in his personal capacity
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