Zimbabwe's State Miner on "Brink of Collapse"
March 24, 21
(IDEX Online) - Zimbabwe's state-owned diamond miner is reportedly "on the brink of collapse" after the country's president allowed Chinese mining giant Anjin to resume operations.
The Zimbabwe Consolidated Diamond Company is currently "facing critical challenges that severely threatened its viability," according to an investigation by the Zimbabwe Independent business weekly.
The late former President Robert Mugabe forced the closure of seven mining companies, including Anjin in 2016, and went on to merge their assets into the ZCDC.
But his successor, Emmerson Mnangagwa (pictured) reversed that move in a bid to restore productivity in the diamonds sector and develop the country's ailing economy.
The Anjin Diamond Mining Company contributed about $200m to Zimbabwe's economy before it was forced to halt operations.
Meanwhile ZCDC has reportedly stopped mining in four of its concessions and abandoned the exploration of three other sites.