News / National
Zim Parliament calls for new diamond law
19 Dec 2011 at 08:12hrs | Views
The Parliamentary Portfolio Committee on Mines and Energy chairperson, Edward Chindori-Chininga has said there is need to put in place a sound legal framework for the diamond sector, which is expected to rake in about $600 million by the end of the year.
Chindori-Chininga said this is a welcome development aimed at improving inflows into the fiscus.
He also said maximum benefits from diamond mining should be supported by a strong legal framework.
Therefore it is imperative the government enacts the Diamond Act as well as review the Mines and Minerals Act.
Chindori-Chininga said proposals to review the Mines and Minerals Act have been on-going for more than 10 years and finality should be brought on the table.
According to Chindori-Chininga a sound legal framework will promote transparency and accountability in the diamond sector as well as the rest of the mining sector.
Diamond operations in the Marange fields in Manicaland are spearheaded by a government- owned company, Zimbabwe Mining Development Corporation (ZMDC), which has joint ventures with Mbada Diamonds, Pure Diam of Dubai and a Chinese company, Anjin Investments.
This year, ZMDC which started its operations in 2007 remitted $139 976 553,13 to Mines and Mining Development ministry while last year it gave the same ministry a dividend of$61 932 751,00.
Chindori-Chininga lamented diamond cutters were not able to get the product after paying $20 000 for licenses, which have to be renewed at the end of the year.
A mechanism should be put in place to compensate people who have been disadvantaged through no fault of their own.
The committee proposed government keeps diamond and gold reserves for use during times of an economic recession, adding this strategy would help to boost Zimbabwe's international standing financially.
The report noted budget allocation to the Mines and Mining Development ministry increased by 33,7% from $5 175 000 in 2011 to $6 921 000 in 2012.
Chindori-Chininga said this is a welcome development aimed at improving inflows into the fiscus.
He also said maximum benefits from diamond mining should be supported by a strong legal framework.
Therefore it is imperative the government enacts the Diamond Act as well as review the Mines and Minerals Act.
Chindori-Chininga said proposals to review the Mines and Minerals Act have been on-going for more than 10 years and finality should be brought on the table.
According to Chindori-Chininga a sound legal framework will promote transparency and accountability in the diamond sector as well as the rest of the mining sector.
Diamond operations in the Marange fields in Manicaland are spearheaded by a government- owned company, Zimbabwe Mining Development Corporation (ZMDC), which has joint ventures with Mbada Diamonds, Pure Diam of Dubai and a Chinese company, Anjin Investments.
This year, ZMDC which started its operations in 2007 remitted $139 976 553,13 to Mines and Mining Development ministry while last year it gave the same ministry a dividend of$61 932 751,00.
Chindori-Chininga lamented diamond cutters were not able to get the product after paying $20 000 for licenses, which have to be renewed at the end of the year.
A mechanism should be put in place to compensate people who have been disadvantaged through no fault of their own.
The committee proposed government keeps diamond and gold reserves for use during times of an economic recession, adding this strategy would help to boost Zimbabwe's international standing financially.
The report noted budget allocation to the Mines and Mining Development ministry increased by 33,7% from $5 175 000 in 2011 to $6 921 000 in 2012.
Source - Byo24News
