Zimbabwe government shuts down Marange diamond miners for resisting nationalisation- updated

Marange was regarded as one of the world’s richest alluvial diamond deposits, but its resources are depleting, experts say.

It was estimated to have produced around 17 million carats in 2013, 13 percent of the global rough diamond supply, according to the Zimbabwe Mining Development Corporation.

Marange produced 12 million carats in both 2012 and 2014, while production figures for 2015 are not yet available.

“Most of these diamond JV companies have been cherry picking easy to mine high grade alluvial deposits and not blending with low grade ore which is difficult to mine and process,” said Chidhakwa.

“The mines are not properly explored and hence the resource is being mined before it was fully proven. No investment was made on kimberlite deposits.”

Chidhakwa said government had only received $637.3 million in revenue from the miners since 2010. Since 2009, the miners had only invested $186 million in the joint ventures.

The Chinese-owned Anjin — in which the state holds a 10 percent shareholding — has yet to produce audited accounts since it started operations, documents from the mines ministry show.

At the press conference, Chidhakwa rebuffed efforts by Anjin Chinese representatives to defend the mining operation in terms of a bilateral agreement between Harare and Beijing.

Chidhakwa said the Zimbabwe Consolidated Diamond Company, a wholly-owned state entity now held all diamond concessions, including those held by Murowa Diamonds, a kimberlite mining operation formerly owned by global resources giant Rio Tinto.

Murowa is now controlled by local firm, RioZim after Rio Tinto sold off its shareholding in June last year.- The Source

(177 VIEWS)