Mbada rakes in $1bn

By The Southern Eye | Mar. 11, 2014

MBADA Diamond Company has surpassed the $1 billion turnover mark with the bulk of the money being channelled towards the fiscus, a company official has said

MBADA Diamond Company has surpassed the $1 billion turnover mark with the bulk of the money being channelled towards the fiscus, a company official has said.

Tarisai Mandizha Business Reporter

Addressing members of the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment last week, Mbada Diamond chairperson Robert Mhlanga said: “We have exceeded the $1 billion turnover mark and the bulk of the money is for the fiscus. The bulk of our production and money goes to government funds, with royalties currently at 15%, depletion of resources 5% and other taxations to the government.

“Mbada Diamond has contributed 75% of the revenue in the fiscus. During the crisis for civil servants’ salaries, Mbada was contributing $15 to $20 million a week to the fiscus,” he said.

Mhlanga said diamond reserves were still available in Chiadzwa, but recent findings from the latest geological survey indicated that alluvial gravels were now depleted. The conglomerates and Kimberlites were deep seated and too expensive to mine.

Mbada is one of the seven diamond mining companies operating in Marange. The other six are Anjin Investments, Diamond Mining Company, GyeNyame, Jinan Mining (Pvt) Ltd, Kusena and Marange Resources.

Some of the miners in Marange claimed that alluvial deposits were fast running out and companies were required to invest in new technology for conglomerate diamond mining.

“When you mine diamond it’s a resource which gets depleted. We primarily have been mining alluvial gravels. I am saying with certainty that the resource is depleting, but we also have conglomerate and kimberlite.”