adminBusiness Correspondent
GOVERNMENT is in the process of finalising negotiations to purchase mining equipment from Diamond Mining Company and DTZ Ozgeo (Chimanimani) diamond mining firms as it steps up its operations under the Zimbabwe Consolidated Diamond Company, Post Business has learnt.
Government began the process of consolidating the diamond mining sector early last year. In February, it shut down all the diamond mining companies in the country following the expiration of their licences.
This was after all the companies failed to fulfill their investment promises and refused to be part of the plan to merge the mines into one new entity to ensure efficiency and transparency.
During a media briefing in Mutare last Thursday, the Mines and Mining Development Minister, Cde Walter Chidhakwa, said his ministry was in the process of engaging diamond companies that had not taken them to court.
The companies have been asked to draw up inventories on how much it would cost to purchase their mining equipment.
“We had warm discussions with DTZ-Ozgeo in Chimanimani. They indicated they would not fight consolidation and would give us an inventory of their equipment.
“Their sorting house in Penhalonga is strategic to service the Marange operations.
“With DMC we are also in progressive talks. Contrary to rumours doing the rounds, we are not expropriating, but individually engaging the diamond mining companies for an amicable way forward,” he said.
Mbada Diamonds, Jinan and Anjin took Government to court over consolidation.
The other companies that were operating in Marange are Marange Resources, Gye Nyame, Kusena and DMC, while River Ranch Mines in Beitbridge, Zvishavane based Murowa Diamonds and DTZ-Ozgeo in Chimanimani are the other diamond companies that were shut down.
Pertaining to hundreds of people who lost their jobs after the closure of the diamond mines, Cde Chidhakwa said ZCDC would rehire most of them.
“I want to assure workers of the diamond companies that it was not the intention of Government to displace them.
“ZCDC is engaging the companies for a win-win way forward. It is our intention to rehire workers discharged on the same conditions if not better.
“The purpose of consolidation was from the recognition that Government has not been receiving meaningful dividends from diamond mining companies in Chiadzwa,” he said.
Cde Chidhakwa said the diamond revenue would go into the national fiscus for more transparency and accountability, which had become a controversial issue since the mining ventures started in 2009.
He added that ZCDC would soon appoint a chief executive officer and top management as it continues to step up its operations.
Minister of State for Manicaland Affairs, Cde Mandi Chimene, however, called for redress on the local employment quota to benefit locals.
“This will be an opportunity for Government to redress the outcry by locals who felt left out on employment opportunities in Chiadzwa. I hope this will be considered,” said Cde Chimene.
The Mines Minister said to ensure transparency and accountability in the production of diamonds, figures would be regularly made available to the public as audited financial accounts.
He said ZCDC would also channel funds towards Community Share Ownership Trusts.
“Government is unhappy that the Community Share Ownership Trust did not get enough money.
“I recently asked the ZCDC board to start a process to meet the requirements of the Community Share Ownership Trust.
“A budget was crafted and over the next 10 to 12 months we will be channeling funds towards the accounts.
“The Community Share Ownership Trust and fiscal requirements will remain our top priority as ZCDC,” he said.
Cde Chidhakwa who also toured the decentralised provincial offices of his ministry warned officials to guard against corruption.
He said double allocation of mining claims and accepting bribes to temper with pegs should stop.
Online Reporter