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In a stark reflection of the challenges facing the diamond sector, Murowa Diamonds has reported a significant financial downturn, swinging from a profit to a substantial loss for the half-year ended 30 June 2025, Mining Zimbabwe can report.
By Rudairo Mapuranga
The mine, an associate of RioZim Limited, recorded a share of loss of ZWG28.0 million for RioZim — a dramatic reversal from the share of profit of ZWG5.6 million reported in the prior comparative period.
This negative result was primarily driven by continued pressure from depressed international diamond prices, which have severely impacted the profitability and cash flows of mining operations worldwide. In response to the harsh market conditions, operational activity at Murowa remained subdued as the mine’s management concentrated on aggressive cost containment and operational optimisation strategies.
The half-year loss compounds a difficult period for Murowa, which has been grappling with deep-seated operational issues. The full-year 2024 performance, as reported by RioZim, revealed an operation in severe distress. The plant throughput at Murowa collapsed by 47% during 2024, a crisis largely attributed to the low availability of the mine’s heavy mobile equipment. The entire fleet had passed its economic life, leading to persistent breakdowns that crippled production.
This operational breakdown had a direct and severe impact on output. Carats produced decreased by 13% to 359,000 carats in 2024, down from 414,000 carats the previous year. The unsustainable situation forced Murowa to take drastic action, decommissioning all its heavy mobile equipment during the year and transitioning to a model reliant on hired equipment for material handling. The financial consequences of this low production and operational overhaul were a net loss for Murowa in 2024, which translated into a share of loss of ZWG66 million for RioZim — a figure that dwarfs the ZWG95,000 loss from the associate in the prior year.
However, amidst the bleak financial figures, a narrative of resilience and strategic adaptation is emerging. In response to the dual challenges of low prices and past operational failures, Murowa has initiated a critical recovery plan. Following an extensive exploration programme, the mine has now commenced in-pit mining activities specifically aimed at improving the grade of ore processed.
This strategic pivot is a direct attempt to counter the adverse market conditions. By focusing on higher-grade ore, Murowa aims to enhance its carat output without a proportional increase in volume, thereby improving operational efficiency and profitability in a low-price environment. This initiative represents a key hope for a turnaround, signalling that the company is not merely weathering the storm but actively repositioning itself for recovery.
The story of Murowa Diamonds in the first half of 2025 is therefore one of acute financial pain, set against the backdrop of a difficult previous year. Yet, it is also a story of a mine in transition. The ZWG28 million loss underscores the severe headwinds from the global market, while the new in-pit mining strategy reveals a determined effort to navigate back to profitability through improved operational efficiency and grade control. The success of this initiative will be crucial in determining whether Murowa can restore its lustre in the challenging periods ahead.
