The Zimbabwe Consolidated Diamond Company (ZCDC) is reportedly going through perilous times and it is reportedly on the verge of total collapse, The Zimbabwe Independent reports.
This came up in the investigation that was done by the publication in collaboration with local NGO Information for Development Trust that showed that ZCDC was affected by the deal they did with Anjin Investments a Chinese outfit that was meant to boost diamond production.
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According to the publication, Anjin Investments grabbed the most productive part of the concession leaving ZMDC to take the remainder which is reportedly failing to sustain the parastatal.
Here are some of the facts that have been presented by the Zimbabwe Independent so far:
- ZCDC’s operations are facing critical challenges that are severely threatening its viability.
- ZCDC has stopped operations in four of its concessions and abandoned three of the four sites where it was exploring for diamonds
- The withdrawal from and closure of several concessions exacerbated by unsuccessful explorations have serious implications on ZCDC’s annual production.
An insider privy to the developments spoke to the publication and said:
All is not well here (ZCDC). The new boss (Mark Mabhudhu) joined a sinking ship. There is a mass exodus of personnel. They are protesting against the handing over of Portal B to Anjin because that was our most valuable asset.
The company was making huge investments in the concession, as it was setting up machinery to extract deep-seated gems, but all that was not considered. As efforts to explore for minerals resources to compensate for concessions lost has been costly and unproductive.
When Mabhudhu was contacted for comment he refused to comment on the issue and said:
As you would know, this is very confidential information that you are requesting to publish, which requires certain approvals as appropriate to be released.
More: The Zimbabwe Independent