Government's pragmatic approach at Chiadzwa laudable

The decision by Government to stop operations of nine diamond companies at Chiadzwa following their failure to renew their licenses is commendable.

It is essential for all mining companies to comply with Government policies for their businesses to be on the safe side. Government does not just do wake up and order these mining firms to cease their operations. When these mining companies applied for their licenses, I believe an agreement was signed after thoroughly reading the Mines and Minerals Act which insinuates that firms have to renew their licenses after a period of three years. Government was even lenient when it gave the mining companies 90days ultimatum to either renew their mining licenses or clear out their equipment and other valuables.

However, it was unfortunate that the mining company owners, workers and security personnel had to vacate well before the particular time frame living the mining fields unattended. Reports from Chiadzwa had it that thieves and illegal panners at the mines were looting mining equipment at the fields. It is pleasing to note that, other things being equal, Government has rectified the situation.

The Government has deployed Zimbabwe Republic Police officers to guard the fields. So far, it has been reported that 50 villagers had been arrested for raiding the fields. Failing to comply with Government policies by these mining firms was a clear indication that they were no longer interested in doing business in the country. Also, for a firm to operate without a renewed license is as good as breaching the law.

Some sections of the media were however linking the cessation of the diamond companies with politics. Some reports were wrongly saying the alleged internal faction wrangles were the idea behind the termination of diamond firms operations. Truth be told, if one does not abide by regulations that guides the operations of either an institution or an organization it depicts that he/she is not interested with business being done there.

Government was justified when it noted that the diamond mines which include Anjin, Diamond Mining Company, Jinan, Mbada, DTZ-OGEO, RERA, Gye-Nyame, Kusena among others were supposed to be amalgamated. However, the firms rejected the idea by Government for them to operate under one firm. There is no doubt that the refusal by these companies to amalgamate was that they wanted to escape from Government scrutiny or control. All they wanted was to operate at their own good without any Government orders.

Previous reports have it that these diamond companies were also failing to account for revenue from their operations. Government has the mandate to know how these companies operate as well as the proceeds coming from the miners. The idea to allow Government to control diamond fields will permit accountability of revenue collected. Surely, if any company is given the privilege to operate at its own will, cases of underhand dealings will be the order of the day.

The economy needs to recover from its own resources. Diamond is a valuable mineral which has the potential to resuscitate the economy. The people of Chiadzwa are supposed to benefit from the minerals mined in their area through Community Share Ownership Trust. Probably the diamond firms failed to renew their licenses because they didn't want to contribute the ten percent of their proceeds to the community.  There is a lot that these mining companies were supposed to do, for instance, rehabilitation of roads and bridges, constructing schools and drilling boreholes.

Most people in those communities are poor whilst their children walk long distances to and from school daily.  

Government's decision to cease operations of diamond firms should act as a work up call to all mining companies nationwide. According to Permanent Secretary in the Ministry of Mines and Minerals, Professor Gudyanga, business should be business handled as business; hence companies ought to abide by the laws that govern their operations.