ZCDC Seeks $300mln for Recapitalisation

Harare: The Zimbabwe Consolidated Diamond Company (ZCDC) is currently engaging local banks to secure about $300 million for equipment and expansion of its operations, according to media reports.

The Source quoted ZCDC chief executive Ridge Nyashanu as saying that the State-owned company, which had no equipment of its own, would use the funds to purchase equipment and upgrade fixed plant.

Harare pushed out several firms that were operating in the Marange fields last year, consolidating their operations into ZCDC.

“Going forward, we are looking at recapitalising and the total cost required would come up to about $300 million,” said Nyashanu.

“We have been in talks with local banks and other private finance houses and the negotiations are quite encouraging. We should be able to come up with an arrangement soon.”

ZCDC secured a $30 million facility last year from the Reserve Bank of Zimbabwe for the purchase of equipment from Belarus.

Diamond output in Marange had been on a downward trajectory since the forced merger.

The diamond fields produced about 900,000 carats last year from peak figures of 12 million carats annually, according to The Source.

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