Rio Tinto increases mineral production PDF Print E-mail

PRODUCTION at Rio Tinto Zimbabwe's Murowa mine has increased by 28%,
although it witnessed a loss of US$5 million due to a ban on the export of
diamonds from Zimbabwe among other factors, the Rio Zim unit said on Friday.
The increased production was attributed to the increased confidence in
resource grade predictions following a review of the resource model last
year, according to the latest group financial results.
Rio Tinto controls 78 % of Murowa Diamonds (Pvt) Ltd, with the remainder
owned by locally listed mining group RioZim.
"The mine recorded its highest output in 18 months in May, and this trend
has been sustained in the following months," RioZim said in its financial
statement.
Murowa Diamonds (Pvt) Ltd recorded a US$5 million loss compared with a loss
of $6.5 million last year owing to low gem grades and the diamond export
ban.
Zimbabwe had banned all diamond exports until stones from the controversial
Marange fields, where it operates two joint venture mines, were certified by
industry regulators.
There had been a lot of controversy surrounding the export of Zimbabwe's
diamonds until issues of human rights violations had been addressed.
Niels Kristensen, the Murowa MD said he expected the mine to resume diamond
exports soon, after the government sold its first batch of certified Marange
diamonds.
Although Rio Zim recorded a 74% increase in group turnover this year, from
US$17 178 000 as at June last year, total equity decreased from
US$55 687 000 during the same period last year to US$40 879 000 this year.
Zesa's excessive load shedding negatively affected the group's gold
production at Renco Mine, according to the statement issued to shareholders
on Friday.
Current liabilities increased by 66% this year up from US$33 603 000 in June
2009 last year.
The Empress Nickel Refinery has been tipped to witness an increase in
profitability during the remainder of this year owing to a secure supply of
the three critical inputs of matte, water and oxygen as well as a reliable
power supply.
on the 88kv line.
Meanwhile, the pending conclusion of the rights issue has caused the
deferring of further drilling at Chimakasa and Kenilworth gold prospect.

BY KUDZAI CHIMAHANGWA