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April 2008

Zimbabwe’s sole operating diamond mining firm Murowa Diamonds recorded a 40 percent drop in production in 2007, owing to frequent power cuts and machine breakdowns, the company said.

Murowa is 78 percent owned by London-based mining firm Rio Tinto Plc.

“Murowa recorded a reduction to 145,000 carats for the year compared to 240,000 carats in 2006,” RioZim chairman Eric Kahari said.

Production was impacted by a lack of electrical power, the company said, and its exploration was hampered by a flight of skilled workers.

Mining industry earnings have overtaken agriculture as Zimbabwe’s major foreign currency earner.

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