October 19, 2017

Embittered Zim diamond miners vow to fight government move

legal challenge

With billions worth of investment at stake, Zimbabwean diamond miners are prepared to fight Robert Mugabe’s government’s move to forfeit their assets to the bitter end, African Mining Brief gathers from Fin24.

Some diamond miners have started litigation steps to contest the move, reported Fin24. It quoted an industry insider: “Some of the companies have already started deliberations for litigation and they are not taking this lightly. It’s another setback for the investment climate… this will worsen the regulatory framework and the ease of doing business because of policies that always change after investors commit funds.”

Controversially, on Monday, Zimbabwe Mines and Mining Development Minister, Walter Chidakwa, ordered all diamond mining activities in Marange and Chimanimani to stop.

Inspired by the success of Botswana where state-owned Debswana, a government partnership with mining giant De Beers has built one of the biggest conglomerates in years, Zimbabwe government is establishing a state-owned diamond company by consolidating all diamond companies. While they see no problem in this decision, it is the manner in which this is being carried out that is worrying the most.

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