De Beers snubs Zimbabwe invitation to mine diamonds in Marange

De Beers snubs Zimbabwe invitation to mine diamonds in Marange
Published: 18 December 2018 (175 Views)
De Beers and Vast Resources will be allowed to explore for diamonds in Zimbabwe, which would make them the first listed companies to mine there in that sector for two years, Mining Minister Winston Chitando said

A spokesman for De Beers, an Anglo American unit, said in an email it was not mining in Zimbabwe and did not intend to. Vast Resources said it could not comment.

Zimbabwe has been working to rebuild investor confidence since long-term leader Robert Mugabe was ousted in late 2017.

This month its mining ministry said it would let in two new companies but did not name them.

Chitando told Reuters De Beers and Vast Resources would be allowed to mine, but could not comment on any changes to ownership rules. "Those are the details that have to be thrashed out," he said.

Vast Resources signed a memorandum of understanding with Botswana Diamonds in May to form a special purpose vehicle majority-owned by Vast to develop resources in Zimbabwe.

In November, Chitando said Zimbabwe did not plan to change radically its ownership laws for platinum and diamonds.

Few miners doubt the potential of Zimbabwe's mineral resources and it is among the world's leading diamond-producing countries. But some investors are concerned about how much money companies can take out because of dollar shortages.

Mugabe accused De Beers of looting the largest diamond fields in Marange in eastern Zimbabwe, where production is dominated by state-owned Zimbabwe Consolidated Diamond Company. De Beers denied the charge.

Zimbabwe Consolidated Diamond Company is one of two firms currently allowed to mine diamonds there. The other, Murowa Diamonds, majority-owned by Rio Tinto until June 2015, is the only private company mining diamonds in south central Zimbabwe.

In early 2016, Mugabe's government evicted all diamond miners from Marange, saying their licenses had expired after they declined to merge under the state-owned mining firm.

As part of its quest to attract foreign investment, Zimbabwe's new government has liberalised indigenisation laws for many minerals but still limits foreign ownership of platinum and diamond projects to a minority, with the state holding 51 percent.

- Reuters

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Teachers to engage in a crippling strike

by Mandla Ndlovu | 26 March 2019 | 137 Views

Mnangagwa copying Cambodia's dictator?

by Mandla Ndlovu | 26 March 2019 | 156 Views

Top USA University honours Evan Mawarire

by Mandla Ndlovu | 26 March 2019 | 115 Views

'Mnangagwa got 33% of the Presidential vote'

by Mandla Ndlovu | 26 March 2019 | 203 Views

Diamonds to contribute $1bn a year

by Staff reporter | 26 March 2019 | 127 Views

US, Canada surgeons honour Mtukudzi

by Staff reporter | 26 March 2019 | 100 Views

Alternative currencies still legal tender in Zimbabwe

by Staff reporter | 26 March 2019 | 106 Views

'Gukurahundi Commission should be given a chance'

by Staff reporter | 26 March 2019 | 77 Views

Coventry challenges Zifa on stadium safety

by Staff reporter | 26 March 2019 | 88 Views

Bosso sweat over trio

by Staff reporter | 26 March 2019 | 71 Views

Man murders, skins granny (71)

by Staff reporter | 26 March 2019 | 98 Views

Work starts on Rutenga- Sango Xai-Xai Highway

by Staff reporter | 26 March 2019 | 78 Views

Zimbabwe prisoners decry poor diet

by Staff reporter | 26 March 2019 | 70 Views

Govt urged to set up missing persons database

by Staff reporter | 26 March 2019 | 75 Views

Chamisa's MP removed from remand

by Staff reporter | 26 March 2019 | 83 Views

In times like these, political posturing must give way

by Learnmore Zuze | 26 March 2019 | 67 Views

Zanu-PF central committee member dies

by Staff reporter | 26 March 2019 | 84 Views

Special prosecutor in no-show at Potraz boss trial

by Staff reporter | 26 March 2019 | 63 Views

Parties to Mnangagwa's dialogue to choose neutral convener

by Staff reporter | 26 March 2019 | 76 Views

Zinara under fire over huge wage bill

by Staff reporter | 26 March 2019 | 67 Views

Gonarezhou to reintroduce rhinos

by Staff reporter | 26 March 2019 | 53 Views

Mayor storms out of prayer meeting

by Staff reporter | 26 March 2019 | 83 Views

10 vie for MDC vice-presidency

by Staff reporter | 26 March 2019 | 104 Views

Zimbabwe worse off under Mnangagwa - survey

by Staff reporter | 26 March 2019 | 62 Views

Gukurahundi symptom of nation formation, says Mohadi

by ZimLive | 26 March 2019 | 79 Views

Division rock war veterans

by Staff reporter | 26 March 2019 | 51 Views

Chamisa warns Mnangagwa of civil unrest

by Staff reporter | 26 March 2019 | 91 Views

Confusion over number of cyclone victims in Zimbabwe

by newzimbabwe | 26 March 2019 | 33 Views

'RTGS$ a failed fraud' Tendai Biti says

by Mandla Ndlovu | 26 March 2019 | 47 Views

Botswana! The sinking of Africa's democracy basket

by Reginald Thabani Gola | 26 March 2019 | 55 Views

Strive Masiyiwa to build house for Cyclone Idai heroine

by ZimLive | 25 March 2019 | 127 Views

Japajapa convicted

by Staff reporter | 25 March 2019 | 128 Views

Zimbabwe govt out to promote new female condom

by Staff reporter | 25 March 2019 | 92 Views

NMB Bank founder to pay back $1.1m

by Staff reporter | 25 March 2019 | 116 Views

Club owner bashes DJ over payment

by Staff reporter | 25 March 2019 | 120 Views

Explain effects of sanctions to everyone, says Matemadanda

by Staff reporter | 25 March 2019 | 82 Views

Former Zinara bosses summoned to Parliament

by Staff reporter | 25 March 2019 | 85 Views