Zimbabwe Economic News: Agribank, News Airline for Zim, Diamond production at Murowa up 28pc
Agribank secures US$30m loan
The Herald reports that Agribank Zimbabwe has secured a US$30 million line of credit from the Industrial Development Corporation of South Africa to support local industry, chief executive Mr Sam Malaba has said. In an interview with The Herald Business yesterday, Mr Malaba said mostly agro-focused companies would access the six-year facility.
“It (US$30 million loan) is coming through anytime before the end of this month,” he said. “It is meant mostly for our corporate clients. We have already received the approvals from IDC and the Export and Import Credit Insurance for the line of credit.” Established in 1940, the IDC is a national development finance institution set up to promote
economic growth and industrial development.
The South African government, under the supervision of the Economic Development Ministry, owns IDC in its entirety.
ECIC is a self-sustained State-owned national export credit agency and registered insurer subject to supervision and regulation of the Financial Services Board.
It underwrites bank loans, supplier credits and investments in foreign countries to enable South African contractors to secure capital goods and service contracts in other countries.
Other firms which benefited included Olivine Industries, Interfresh and manufacturing firms such as Zimglass, Zim Copper, property developer Sunway City and Aluminium Industries. Friday, 19 October 2012, The Herald
Fresh Air to commence flights
In a development that will boost the country’s state of preparedness for next year’s UNWTO General Assembly, the newly-launched Zimbabwean budget airline Fresh Air, will finally launch its first flight on November, 2 flying between South Africa’s OR Tambo International Airport and Victoria Falls Airport.
The airline’s maiden flight was in August from Johannesburg to Harare and later proceeded to Victoria Falls.
The Zimbabwean-registered low-cost airline recently entered into a joint venture agreement with 1time Airline according to which 1time aircraft will be used to serve the Fresh Air route.
Blacky Komani, 1time chief executive said his company is terminating its current Livingstone flight in favour of flights to be operated by Fresh Air between Johannesburg and Victoria Falls Airport.
“The result is that 1time’s operating cost will remain the same and the benefit to us is that our load factors will be much higher,” said Komani.
1time is currently under business rescue whilst the debt-laden airline finalises a business rescue The airline has already cut two of its aircraft and is now operating eight aircrafts and is reported to be in debt of around R300 million.
Fresh Air has officially acquired the traffic rights to commence operations and has announced the new route schedule, which as it stands, includes three weekly flights from OR Tambo International Airport.
The airline is also looking at getting licences for more Zimbabwean routes and regional routes within Sadc Komani noted that the route introduction comes at an opportune time for Fresh Air due to the upcoming holiday peak season. Friday, 19 October 2012, DailyNews
Diamond production at Murowa up 28pc
Diamond production at Zvishavane-based Murowa Mine increased to 92 000 carats in the third quarter, up from 72 000 carats produced in the same period last year, parent company Rio Tinto reported on Wednesday.
In an update, the mining conglomerate said output at Murowa, the smallest of its three diamond mines, had increased by 28 percent.
“Murowa’s diamond production for the first nine months of the year also grew to 215 000 carats, up from 198 000 carats mined in the same period last year,” it said.
Rio Tinto plc owns 78 percent of Murowa Diamonds while RioZim Limited, an independent Zimbabwean owned and listed company, holds the remaining 22 percent stake.
Three kimberlite pipes were discovered on the mine site in 1997, leading to feasibility studies and mine planning from 1998 to 2000, culminating in commissioning of a small-scale operation in 2004.
The resource has the potential to be expanded to six or seven times its current production level with a review of the feasibility study for this expansion currently underway.
Murowa Diamonds employs around 180 people directly and 150 full time contractors.
Meanwhile, Rio Tinto also reported that its other mines in Australia and Canada produced 2,454 million carats and 1,1160 million carats respectively in the period under review.
The group’s overall diamond output increased to 3,706 million carats during the period under review.
Rio Tinto said its overall diamond production also increased 13 percent to 9,873 million carats during the first nine months of the year.
Diamond output continues to increase in Zimbabwe with the KP recently reporting that the country was now the world’s fifth largest diamond producer after it exported 7,15 million carats of diamonds last year.
Other diamond mining firms operating in Zimbabwe include Marange Resources, Mbada Diamonds, Anjin and Diamond Mining Corporation which are all operating in Marange at the Chiadzwa fields. Thursday, 18 October 2012, Chronicle