The government of Zimbabwe has finalised plans to invest US$ 400 million in a diamond mining project over the next five years, even as it is likely to release its new diamond policy soon, media reports have said.

While CEO of the Zimbabwe Consolidated Diamond Mining Company (ZCDC) Dr Morris Mpofu was said to have announced the loan, Mines Minister Winston Chitando was reported to as stating that the release of the new policy was “imminent”.

The reports say that the government investment will be in exploration, expansion, beneficiation and setting up of refinery plants among other things, with the aim increasing the value of returns and making the diamond mining sector viable. It will speed up the ongoing transition from alluvial to conglomerate mining systems.

Other reports say that the government will soon announce a policy aimed at opening the sector to fresh investment across the value chain. This comes at a time when there has been a significant depletion in surface alluvial deposits, and a new policy may usher in measures that promote diversification to kimberlitic production.