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claims by Finance Minister Tendai Biti that the joint venture between Government and the Chinese at Chiadzwa has not brought any benefits to the country.
The company is a joint venture between AFECC of China and the Government of Zimbabwe through its investment vehicles, the Zimbabwe Mining Development Corporation and Mettabronze.
Anjin board member, Mr Munyaradzi Machacha, on Tuesday told European Union ambassadors on a tour of the diamond fields that it was strange that Minister Biti was making such claims.
“So far, we have remitted US$30 million through royalties,” he said.
Mr Machacha said Anjin had invested US$400 million at Chiadzwa and was yet to make profit for it to declare dividends.
In an interview with The Herald on the sidelines of the tour, Mr Machacha said Anjin was only given Kimberley Process Certification Scheme clearance to sell its diamonds in December last year.
He said Minister Biti made his national budget on the wrong assumption that diamonds from Chiadzwa were going to contribute US$600 million this year and was now trying to blame diamond companies for his miscalculations.
Information at hand shows that the diamond companies informed Minister Biti that the US$600 million target was unrealistic prior to the national budget presentation.
However, he insisted with his figures.
“It is either he is untruthful, incompetent or illiterate. He made the blunder and miscalculated. He must be man enough and admit that he made a mistake,” Mr Machacha said.
Mr Machacha said Minister Biti based his US$600 million figure on the assumption that a carat of diamond is worth US$1 300 when in fact its average value is US$60.
He said industrial diamonds at times sell far below the US$60 per carat.
“He (Minister Biti) is scapegoating companies like Anjin for his miscalculations. He is persecuting a cash cow because he made a blunder,” Mr Machacha added.
He said Anjin requires at least three years to start making profit considering the huge amounts of capital injected by the investor.
Commenting on strikes often by Anjin workers who have previously cited poor remuneration, Mr Machacha said management had opened up negotiations with the workers with the intention of reviewing their working conditions.
He spoke on other Anjin Investments outside diamond mining.
“We have a hotel in Mutare. We are building a supermarket and a shopping mall and a five star hotel in Harare,” he said.
Mr Machacha said Anjin was happy that the diplomats from 12 countries that toured Chiadzwa “would now be able to distinguish between facts and fiction” as they now have first hand information on what is taking place there.
Earlier the diplomats who were led by EU ambassador Mr Aldo Dell’ Ariccia had toured Marange Resources, a wholly Government owned and run diamond firm.
“We are excited to see that you have come here to see for yourselves our operations considering what is said about Marange diamonds,” said Marange Resources chief executive officer, Mr Obert Dube.
Over 21 percent of diamonds sold by Marange Resources go to the fiscus while the company also makes contributions through taxes and royalties.
“We eat what we kill. We have no investor and when we make profits we declare dividends,” Mr Dube said.
Marange Resources also outlined how it was ploughing back to the community with indications that it has adopted 22 local schools and makes donations of 66 000 exercise books among other things every term.
At Marange Resources the diplomats caused a stir as they refused to be subjected to the stringent body searches citing diplomatic immunity.
They were later allowed in following consultations with Government and company authorities albeit after undergoing “smart searches”.
They passed through Manicaland Provincial Governor Chris Mushohwe’s offices on their way to the diamond fields.
The Governor made it clear that sanctions were hurting the diamond companies.
“We hope you will be able to exert your influence to your capitals. Mbada and Marange Resources have been placed on the sanctions list. It would be a good thing if through your good offices after seeing you help us so that they could continue with their operations,” he said.
But Ambassador Dell’ Ariccia said their visit was not linked to the “restrictions or the KP” but a familiarisation tour.
Mr Dell’ Ariccia and Canadian Ambassador Lisa Stadelbauer left the diamond fields midway through the tour.
Online Reporter