(NEWZIMBABWE) Zimbabwe to review diamond deals

Zimbabwe to review diamond deals
21/05/2012 00:00:00
by Staff Reporter

ZIMBABWE is not benefiting from diamond mining at Chiadzwa and is looking to reveal its agreements with companies operating in the area, a government minister has said. Deputy mines minister Gift Chimanikire said Zimbabwe should own at least 70 percent of the joint venture companies operating in the area.

Most of the companies presently have 50-50 joint venture deals with the state-owned Zimbabwe Mining Development Corporation (ZMDC).

“As a ministry we are advocating to some of our colleagues that we need to re-visit some of the contracts we signed with foreign companies mining diamonds,” Chimanikire told a meeting of the Zimbabwe National Chamber of Commerce in Mutare.

“Diamonds are our own natural resource and Government should review those contracts and ensure Zimbabwe benefits. We deserve better than the 50/50 nemunhu akauya nefoshoro.

“Government should have at least 70 percent or even 80 percent. Let us re-look at that policy. We signed those deals when we were poor. We are no longer poor.”
Marange Resources, Mbada Diamonds, Anjin Investments and Pure Diamonds are currently operating at Chiadzwa.

Chimanikire’s remarks come after Finance Minister, Tendai Biti said Zimbabwe would miss its economic targets this year mainly due to under-performing diamond revenues.

"Diamond revenues have been under performing since January to 2012, with only $30.4m remittances received for the period January to 21 March 2012," Biti said last week. The target was $122.5m.
He particularly blamed Anjin and claimed the company was probably deliberately diverting funds away from treasury.

"We have not received a single cent from Anjin, yet Anjin is seven times bigger than some of the other [diamond] companies," Biti said.

"Clearly, we fear as the ministry of finance that there might be a parallel government somewhere in respect of where these revenues are going, and are not coming to us.

"There is opaqueness and unaccountability surrounding our diamonds."