Maravi

(HERALD) Govt cancels ACR’s diamond licence

Govt cancels ACR’s diamond licence
TH/TZG
Tue, 16 Feb 2010 03:36:00 +0000

GOVERNMENT has cancelled African Consolidated Resources’ title to diamond deposits in Marange, Manicaland, and has since communicated its decision to the London Stock Exchange-listed company.

The Herald is also reliably informed that Government has started investigating the company’s various mining activities all over Zimbabwe.

Documents in this paper’s possession show that the Government notified ACR of the cancellation last month.

ACR chief executive Andrew Cranswick yesterday said they had received the letter and would lobby Government for a 50-50 joint venture.

He said the letter served to show that their company was the "rightful" owner of the claims.

In a letter dated January 28, 2010, Secretary for Mines and Mining Development Thankful Musukutwa said he was empowered by Section 341 of the Mines and Minerals Act to appraise ACR’s claims in his capacity as mining commissioner.

"In my capacity as Secretary (for the) Ministry of Mines and Mining Development, you are hereby given notice of my intention to cancel the Certificates of Registration with effect from 10 March 2010 being a period of not less than 30 days from the date of this letter," he wrote.

Musukutwa said the grounds upon which the Certificates of Registration were being cancelled were as recorded in Section 50 (1) (a) of the Act.

"In this regard, at the time the blocks or sites covered by the Certificates of Registration were pegged, they were and still are situated on ground reserved against prospecting and pegging under Section 35 of the Act.

"This appears from Reservation Notice 1518 dated February 2004," he said, while further advising ACR that it had the right to appeal against the decision.

"You are, in accordance with the provisions of Section 50 (2) of the Act, entitled at any time before the proposed date of cancellation of the Certificates of Registration, to appeal in writing to the Minister of Mines and Mining

Development against such cancellation," he said.

The decision will soon be published in a Government Gazette.

Cranswick said: "We don’t understand the motives behind these cancellations. ACR offered Government a 50-50 joint venture repeatedly for the past two years but they have been ignored.

"The cancellation is an acknowledgement that we have valid titles in Marange. We will continue lobbying Government for a joint venture for the benefit of the people."

In 2006, Government declared null and void the company’s Certificates of Registration on the grounds that they were improperly granted.

The cancellation empowered the Government-owned Zimbabwe Mining Development Corporation to exploit the Chiadzwa diamond resource.

ZMDC later partnered Mbada Holdings and Canadile Miners and are mining the Chiadzwa fields after having invested over US$100 million in state-of-the-art mining and security equipment.

They have also constructed an airstrip to facilitate the transportation of diamonds as per Kimberley Process Certification requirements.

ACR then sought legal recourse in a bid to regain the control over the diamonds and the mining claims.

Meanwhile, reliable sources say Government is "unsatisfied" with ACR’s activities in Zimbabwe and has launched an investigation into the company’s operations.

"We are looking at the company’s mining interests across all sectors, whether it is gold or anything else, to establish the investment they have put into the country.

"Although they are a London-registered company, we are not aware of any business activities they are carrying out in Zimbabwe, especially in mining," said the source.

Labels: AFRICAN CONSOLIDATED RESOURCES PLC, ANDREW CRANSWICK, DIAMONDS, MARANGE DIAMOND FIELDS

posted by MrK @ 5:38 AM