Zimbabwe Pressurizes Diamond Miners

Walter Chid
Walter Chidhakwa

Harare: The Zimbabwean government has ordered diamond mining companies to present their audited financial statements and sign up to the newly-formed company, the Zimbabwe Consolidated Diamond Company.

An emergency general meeting (EGM) had been slated for next month where the audited financial statements would be presented.

Harare would have a 50 percent stake in the company while the diamond companies would share the remaining equity.

State-owned daily, The Herald quoted mines minister Walter Chidhakwa as saying that companies not happy with the consolidation proposal were free to cease their operations in Zimbabwe.

“I have made a strong plea to the companies, resistances here and there, uncertainty here and there. But I want to communicate that we are not stopping,” he said.

“Where we are now is that as 50 percent shareholders through ZMDC we have a right to call for an extra ordinary general meeting. We have called for EGMs and we have invited our partners to the EGM.”

Chidhakwa said the EGMs would discuss two issues that included the companies’ audited financial statements and the companies’ response to Harare’s call for consolidation.

“We want them to take a position and tell us whether as companies they will go ahead. That is the commercial route. The companies will go in and vote and come up with a position. These are commercial mechanisms,” he said.

“If any company decides not to sign up for the consolidation, government will use the legal route. But commercial decisions by companies do not have the effect of changing government policy…“  Zimbabwe said the consolidation would help improve transparency and revenue inflows, especially in the Marange area.

Although the integration was initially meant for mining companies operating in Marange it was later extended to include DTZ-OZGEO and Murowa Diamonds previously 78-percent owned by Rio Tinto.