Wrangle over Zimbabwe diamond mine continues

Wrangle over Zimbabwe diamond mine continues
Published: 12 February 2019 (79 Views)
THE stalemate over the pricing of River Ranch Mine, situated in the border town of Beitbridge, continues unabated as the owners, Rani Investments, and potential buyers, the Zimbabwe Consolidated Diamond Company (ZCDC), have failed to agree on the price, NewsDay can reveal.

A once-lucrative mining venture, River Ranch was placed under liquidation in 2012 after Dubai-based Rani Investments, who are the major shareholders in Limpopo Mining Resources (Pvt) Limited (LMR), approached the courts seeking to officially wind-up the company due to viability challenges. Rani Investments holds 80% of LMR, while the other 20% is said to belong to the estate of the late army commander, Solomon Mujuru and former Zanu PF heavyweight, Tirivanhu Mudariki.

In an interview on Sunday, River Ranch liquidator Winsley Militala disclosed that the two parties were still far from agreeing on the selling price of the mine.

He said River Ranch's major shareholders had pegged the mine at $10 million, while ZCDC has offered $4 million as takeover price.

"I still have a deadlock that I have to try and work on unlocking. Rani Investments believes that the $4 million that ZCDC is offering is too low for the mine and for what is underground. They know what mineral is there and how much value that mineral has, and they are insisting that $10 million is the right price," Militala said.

He added that ZCDC had deployed more than four teams of its evaluators to visit the mine and carry out evaluations.

"Those guys have been there several times since we started this discussion. The evaluators are the ones that have given feedback to ZCDC on what they found out when they visited the mine. This is the information that should be able to guide the ZCDC accordingly in as far as arriving at its offer," Militala said.

On whether the $10 million that the shareholders were asking was justifiable given the period the mine was not operational, Militala said: "I sell the mine as it is. There is no way I can change things so as to make it accumulate value. If they continue offering that $4 million and the shareholders stick to their guns, then we have a bigger problem that requires us to sit down and have a discussion," he said.

River Ranch Mine, at its closure, was close to $22 million in the red, with the major shareholder in debt of more than $20 million.

ZCDC chief executive officer Morris Mpofu, in a recent interview, confirmed that there had been no movement in the negotiations and possible acquisition of the mine.

- newsday

Tags: Wrangle, MIne, Diamonds,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Gilbert Mushangazhike surfaces in division 2

by Staff reporter | 25 April 2019 | 51 Views

Zimbabwe is reforming for the better

by Sibusiso Ndlamini | 25 April 2019 | 39 Views

'G40 buying guns to fight Mnangagwa,' says Eddie Cross

by Mandla Ndlovu | 25 April 2019 | 66 Views

European Union pours €4.5millon to Zimbabwe

by Mandla Ndlovu | 25 April 2019 | 51 Views

Mnangagwa throws lavish dinner for Museveni

by Mandla Ndlovu | 25 April 2019 | 49 Views

WATCH: Chiwenga lashes 'financial terrorists'

by Staff reporter | 25 April 2019 | 40 Views

Govt dismisses rumour of fuel price hike

by Staff reporter | 25 April 2019 | 99 Views

WATCH: Chiwenga fires threats at business owners

by Mandla Ndlovu | 25 April 2019 | 79 Views

Outcry as NetOne increases the price of OneFussion bundles

by Mandla Ndlovu | 25 April 2019 | 75 Views

PHOTOS: NPRC holds Gukurahundi meeting in Gwanda

by Mandla Ndlovu | 25 April 2019 | 65 Views

Chiwenga issues a chilling warning

by Staff reporter | 25 April 2019 | 95 Views

Zimpapers shuts down its weekly newspaper

by Mandla Ndlovu | 25 April 2019 | 66 Views

ZANU PF MP raises funds for a woman eaten by dogs alive

by Mandla Ndlovu | 25 April 2019 | 71 Views

'I was never part of the system' Jonathan Moyo says

by Mandla Ndlovu | 25 April 2019 | 76 Views

PROPHECY: Armed people to hijack buses in Zimbabwe

by Mandla Ndlovu | 25 April 2019 | 84 Views

ZCTU President Peter Mutasa acquitted

by Mandla Ndlovu | 25 April 2019 | 46 Views

FULL TEXT: New Maintenance of Peace and Order Bill

by Mandla Ndlovu | 25 April 2019 | 54 Views

PHOTOS: Zanu-PF Councillor sworn in Bulawayo

by Mandla Ndlovu | 25 April 2019 | 53 Views

Chamisa sticks to his guns

by Staff reporter | 25 April 2019 | 181 Views

Bid to lure Mugabe back into active politics exposed

by Staff reporter | 25 April 2019 | 175 Views

Bulawayo mayor vows to resuscitate industries

by Staff reporter | 25 April 2019 | 73 Views

Realizing your dreams in the age of austerity

by Mapozho Saruchera | 25 April 2019 | 76 Views

Chamisa blasts Mnangagwa over Museveni invite

by newzimbabwe | 25 April 2019 | 174 Views

Church leaders meet security chiefs

by newzimbabwe | 25 April 2019 | 140 Views

Govt to standardise varsity appointments

by Staff reporter | 25 April 2019 | 83 Views

Chiwenga lashes out at 'financial terrorists'

by Staff reporter | 25 April 2019 | 92 Views

Mnangagwa reshuffles top civil servants

by Staff reporter | 25 April 2019 | 115 Views

CPU warns of Cyclone Kenneth, landfall

by Staff reporter | 25 April 2019 | 92 Views

Support Unit told to be proactive

by Staff reporter | 25 April 2019 | 73 Views

$4 million bitumen vanishes

by Staff reporter | 25 April 2019 | 62 Views

ZNA dismisses AK47 report

by Staff reporter | 25 April 2019 | 79 Views

1 dead, another critically injured in headlights row

by Staff reporter | 25 April 2019 | 80 Views

Chiwenga warns for corporates feeding the black market

by Staff reporter | 25 April 2019 | 67 Views

Cyclone Kenneth: Zimbabwe not in danger

by Staff reporter | 25 April 2019 | 64 Views

Mthuli Ncube laments indisciplined speculation

by Staff reporter | 25 April 2019 | 64 Views

Burundi seeks Zimbabwe support to join Sadc

by Staff reporter | 25 April 2019 | 59 Views