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RioZim expands its mining venture in Africa

RioZim Ltd. bid to expand in Africa has landed them a purchase of the Sperrgebiet Diamond Mine in Namibia. Tawanda Andrew Chiurayi, RioZim’s group company secretary confirmed the reports and said the firm goal is to diversify their assets and geographies.

“The group has been trying to broaden its footprint in the mining industry in Africa and this acquisition was part of the strategy,” said the company secretary.

Sperrgebiet

Sperrgebiet holds two onshore and two offshore mining licenses, within Luderitz’s protected diamond zones. RioZim is also planning further investments in base and precious metals in Zimbabwe, after spending more than $150 million at its gold mine and a new plant at the Murowa diamond mine, Chiurayi said. Output at Murowa tripled in September following the investment, he said.

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

“Forex shortages and power shortages are seriously hampering progress, but our belief in the long term is undeterred,” Chiurayi said.

Namibia has the richest known marine diamond deposits in the world, estimated at more than 80 million carats. They represent around 65 per cent of Namdeb Holdings’ total diamond production and 90 per cent of its diamond resources.

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