Wrangle over Zimbabwe diamond mine continues

Wrangle over Zimbabwe diamond mine continues
Published: 12 February 2019 (48 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

Mnangagwa admits deploying military crackdown

by Staff reporter | 17 February 2019 | 112 Views

Mutambara pays tribute to 'literary giant' Mungoshi

by Staff reporter | 17 February 2019 | 83 Views

Chiwenga still in Indian hospital

by newzimbabwe | 17 February 2019 | 126 Views

Auxilia Mnangagwa's hand exposed in Zanu-PF youth league ructions

by newzimbabwe | 17 February 2019 | 126 Views

Zimbabwean facing UK deportation says fears being 'killed' at home

by Staff reporter | 17 February 2019 | 101 Views

Bushiri's private jet attached

by news24 | 17 February 2019 | 84 Views

24 bodies retrieved from flooded Zimbabwe gold mine

by AFP | 17 February 2019 | 88 Views

Mnangagwa launches crackdown on illegally settled farm occupiers

by newzimbabwe | 17 February 2019 | 80 Views

Mnangagwa claims that fuel and wheat shortages already fixed

by Staff reporter | 17 February 2019 | 99 Views

AFM drama continues

by Staff reporter | 17 February 2019 | 108 Views

Smart agriculture will boost economy

by Staff reporter | 17 February 2019 | 83 Views

Masowe woman in record breaking home deliveries

by Staff reporter | 17 February 2019 | 98 Views

Chamisa, Mnangagwa dialogue is not about power-sharing

by Nick Mangwana | 17 February 2019 | 91 Views

Zimbabwe unlikely to renew Bureau Veritas deal

by Staff reporter | 17 February 2019 | 76 Views

We remain committed to media liberalisation

by Hon. Monica Mutsvangwa | 17 February 2019 | 77 Views

City dwellers to get food relief

by Staff reporter | 17 February 2019 | 72 Views

Govt begins receiving applications for voluntary retirement

by Staff reporter | 17 February 2019 | 99 Views

MDC Alliance lie has no legs

by Staff writer | 17 February 2019 | 87 Views

Mnangagwa aware of Chamisa's renewed bid to relaunch violent protests

by Staff reporter | 17 February 2019 | 89 Views

Chamisa to bring everyone to Harare for a Mother of All Demonstrations

by Staff reporter | 17 February 2019 | 79 Views

NRZ slashes commuter train fares

by Staff reporter | 17 February 2019 | 77 Views

Selmor relives childhood in Tuku household

by Staff reporter | 17 February 2019 | 51 Views

Sex makes Zodwa Wabantu fat

by Staff reporter | 17 February 2019 | 86 Views

Bosso end pre-season training

by Staff reporter | 17 February 2019 | 69 Views

First private teachers' college opens doors

by Staff reporter | 17 February 2019 | 58 Views

'Mnangagwa invite a step in right direction'

by Staff reporter | 17 February 2019 | 63 Views

Zimta CEO earns around $10 000 before deductions?

by Staff reporter | 17 February 2019 | 64 Views

Haddon and Sly suspends workers

by Staff reporter | 17 February 2019 | 46 Views

Bulawayo water shedding worsens

by Staff reporter | 17 February 2019 | 50 Views

Bosso, Dembare face collapse

by Staff reporter | 17 February 2019 | 48 Views

Chamisa suspends official for challenging his leadership?

by Staff reporter | 17 February 2019 | 47 Views

Village head arrested for rape

by Staff reporter | 17 February 2019 | 37 Views

The paradox of Chete Chete! Emerging understandings in 2019

by Michael Mhlanga | 17 February 2019 | 77 Views

Mnangagwa speaks on Chiwenga's health

by Staff reporter | 17 February 2019 | 48 Views

RBZ not ready for Zimdollar return

by Staff reporter | 17 February 2019 | 45 Views

How cryptocurrencies can rescue Zimbabwe

by Masotsha Charles Matlobo | 17 February 2019 | 80 Views

Skyz Metro hit by resignations

by Staff reporter | 17 February 2019 | 43 Views

Solar energy is the future: Masiyiwa

by Staff reporter | 17 February 2019 | 47 Views