ZCDC on autopilot.. management approach threatens viability

ZCDC on autopilot.. management approach threatens viability1 August 2025

ZCDC on autopilot.. management approach threatens viability

By A Correspondent| The Zimbabwe Consolidated Diamond Company (ZCDC) is on autopilot after failing to pay employee with inside sources blaming the current top management of failing to impliment sound policies to drive the diamond miner.

With many workers having lost their jobs while remuneration of those still on the job remains unclear, a critical conversation about the company’s management practices and future strategy is necessary.

Instead of attributing the failure to pay salaries on time solely to fluctuating international market prices, ZCDC management must take a hard look at its internal operations, according to industry captains.

In a confidential email seen written by ZCDC Chief Executive Office Douglas Zimbango to staff on the July salaries update, he casted the blame on the current diamonds sales joint venture between ZCDC and its Dubai based partner.

“As you may be aware, the JV sales arrangement was up for review on 15 June 2025.

As management, we were of the view that most of the conditions precedent were not reasonable met and the average price per carat was at its lowest for May production at $17.17 per carat against total operating costs of $30.71 per carat and production costs of $23.79. We could not accept that price and so referred the matter to both Mutapa and our board.

“The board and Mutapa were of the view that we should suspend the JV while our legal teams reviewed the arrangement but to keep the business running, we then offered the May and June production to the JV Partner on a “without Prejudice” on consignment with a reduced commission and overall oversight by ZCDC. The JV partner on 30th July 2025 then rejected this outright and so tomorrow we are meeting with the board for guidance,” Zimbango said.

“Given this scenario, we are unable to pay salaries and fund production unless drastic decisions are made for which we hope will be done at tomorrow’s board meeting.,” he added.

According to sources at ZCDC, the decision to cut jobs, particularly affecting local miners, seems to sidestep the real issues plaguing the company.

A serious restructuring plan is essential, focusing on enhancing operational efficiency rather than reducing the workforce.

According to the sources who requested anonymity for fear or reprisal noted that ZCDC should consider optimizing its mining operations by investing in modern mining services. This could include adopting new technologies and training for the workforce to improve productivity and reduce costs.

Going foward, Streamlining the procurement process is another area where ZCDC could significantly enhance efficiency. By negotiating better contracts and sourcing materials locally, the company can reduce expenses and support the local economy.

“Upgrading the processing plant is crucial.

Implementing advanced processing techniques can improve yield and reduce waste, directly impacting profitability,” a senior management source at ZCDC said.

“The recent surge in stolen stones, particularly from ZCDC operations in Mutare, highlights the urgent need for improved security measures. Investing in state-of-the-art security systems and protocols could help safeguard assets and prevent further losses.”

Despite the negative results, the question remains: why has the top management remained untouched?

Source: ZimEye