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(TALKZIMBABWE) ACR faces prosecution over illegal diamond mining

ACR faces prosecution over illegal diamond mining
By: Our reporter
Posted: Saturday, October 2, 2010 11:40 pm

THE Government of Zimbabwe intends to prosecute mining company African Consolidated Resources (ACR) after the High Court ruled that the London Stock Exchange-listed firm fraudulently acquired rights to mine diamonds at the Chiadzwa fields in Manicaland.

Attorney-General Mr Johannes Tomana last week confirmed that the Government had already prepared the necessary paperwork. He said the company faces fraud and unlawful diamond possession charges after it was found guilty of acquiring mining claims using the names of unregistered companies.

It also emerged that ACR was allegedly masquerading as a geological surveyor at the fields while allegedly mining and buying gems from illegal miners.

It allegedly mined and bought about 129 000 carats.

The State will, therefore, proceed to prosecute the company whose chief executive officer, Mr Andrew Cranswick, is believed to be living in Kent in the United Kingdom.

Mr Cranswick left Zimbabwe when the case against ACR started over a year ago and has not been in the country since.

Chief Law Officer in the AG’s Office Mr Chris Mutangadura said the prosecution would be twin-pronged.

“As you know, the High Court ruled that ACR fraudulently acquired claims in Chiadzwa,” he said.

“The State has two cases against the company. The first is that the four companies that it used to acquire claims (Heavy Stuff, Dashaloo, Olebile and Possession Investments) were yet to be registered and this constituted fraud through misrepresentation.

“The second case is that ACR pegged claims in an area that was designated reserved.

“The company also posed as though it was not mining. They even wrote correspondence to the Minister of Mines and Mining Development (Obert Mpofu) stating that they were not mining.

“However, it was noted that they mined 129 000 carats. They also bought diamonds from illegal miners.

“That in itself is unlawful possession of diamonds.”

Last month, High Court judge Justice Charles Hungwe nullified ACR’s licence to mine at the diamond fields after it emerged that the company had acquired claims fraudulently.

The ruling rescinded an earlier judgment passed on September 27 last year validating ACR claims.

In light of fresh evidence, Justice Hungwe said ACR had concealed important information.

“Only a person can be granted a prospecting licence. Since none (of the subsidiaries) was incorporated, there was no person to release a certificate of mining,” he said.

“It seems to me now that quite a lot of information was kept away from the court.”

Labels: AFRICA CONSOLIDATED RESOURCES, ANDREW CRANSWICK, CHIADZWA, JOHANNES TOMANA

posted by MrK @ 2:04 PM