News / National
Zimbabwe shuts down diamond firms
22 Feb 2016 at 17:04hrs | Views
Government has ordered diamond mining companies in Marange to stop operations with immediate effect following the expiry of their licences, giving 90 days for firms to remove their equipment and other valuables.
The taking over of Marange diamond mining concession by government follows the expiry of the special grants held by joint venture companies as far back as 2010 while others expired in 2013.
The firms have also failed to comply with the consolidation process.
Briefing journalists in Harare in the presence of all diamond mining executives, the Minister of Mines and Mining Development, Walter Chidhakwa said for the past seven years, diamond mining companies failed to invest heavily in the sector.
"It has come to our attention that the joint venture companies have been operating illegally as the permits which had been granted expired and were not renewed over the last four to five years. Given the fact that the Marange diamond fields are considered a strategic national resource which must be exploited in a manner that ensures that the benefits derived from their exploitation impacts positively on the economy and benefits the entire population of Zimbabwe, we have decided not to renew the permits of all the companies in Marange and Chimanimani," he said.
In response to the falling output from Chiadzwa and the limited benefits being derived from activities, government issued a policy directive for diamond companies to consolidate into one entity which companies resisted.
"For seven months, we have tried to talk to mining companies on the consolidation process but they refused to comply leaving government with no option. The consolidation is set to create a powerful Zimbabwean company which is capable of harnessing and controlling its diamond resources for the long term benefit of the nation. There is no room for negotiation, we have closed the chapter," noted Minister Chidhakwa.
After the proposed partnership between government and mining companies to form the Zimbabwe Consolidated Diamond Company failed to take shape, government is going on equipping the new company to ensure it produces between 8-12 million carats annually.
The taking over of Marange diamond mining concession by government follows the expiry of the special grants held by joint venture companies as far back as 2010 while others expired in 2013.
The firms have also failed to comply with the consolidation process.
Briefing journalists in Harare in the presence of all diamond mining executives, the Minister of Mines and Mining Development, Walter Chidhakwa said for the past seven years, diamond mining companies failed to invest heavily in the sector.
In response to the falling output from Chiadzwa and the limited benefits being derived from activities, government issued a policy directive for diamond companies to consolidate into one entity which companies resisted.
"For seven months, we have tried to talk to mining companies on the consolidation process but they refused to comply leaving government with no option. The consolidation is set to create a powerful Zimbabwean company which is capable of harnessing and controlling its diamond resources for the long term benefit of the nation. There is no room for negotiation, we have closed the chapter," noted Minister Chidhakwa.
After the proposed partnership between government and mining companies to form the Zimbabwe Consolidated Diamond Company failed to take shape, government is going on equipping the new company to ensure it produces between 8-12 million carats annually.
Source - zbc
