RioZim: 2007 Murowa Production -40%

Rio Tinto Zimbabwe, which operates the Murowa diamond mine with Rio Tinto plc, reported a 40 percent decline in Murowa mine production in 2007, from 240,000 carats in 2006 to 145,000 carats last year.

The production decline was a result of frequent power outages, equipment failures and a delayed expansion program, according to Reuters.

“Besides the anticipated decrease in grade with depth and the delay in the implementation of the expansion project, production was adversely affected by ZESA power outages and contractor mining fleet breakdowns due to lack of spares,” Rio Tinto Zimbabwe said in a statement.

ZESA, the state-owned power utility, has failed to provide reliable electrical supply throughout the country in the recent past.

Rio Tinto plc, which owns 77.8 percent of the Murowa mine, said in its annual production report that Murowa mine earnings had totaled $3 million for 2007, $7 million less than in 2006 and that production by volume had fallen from 187,000 carats in 2006 to 113,000 carats in 2007.