Zimbabwe government firm takes over diamond claim

Zimbabwe government firm takes over diamond claim

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By Staff Reporter

ZIMBABWE'S government has awarded an exploration licence for the Marange diamond concession to a state firm after revoking a British-based miner's title to the claim, officials said on Tuesday.

African Consolidated Resources (ACR) held the licence for the Marange concession in eastern Zimbabwe but the government cancelled it in December, arguing that the licence could have been issued in error.

Marange has been cited by the World Diamond Council as one of the sources of diamonds which it fears could be finding their way onto the black market, in violation of rules set to curb so-called conflict or "blood" diamonds fuelling civil wars.

Roy Tucker, a director at ACR, said that the Zimbabwe Mining Development Corporation (ZMDC) -- a state minerals marketing arm -- had since moved onto the Marange site, the scene of a rush for diamonds that saw an estimated 20,000 panners converge to dig for the precious stones last year.

"The ZMDC has been given a special grant to Marange, which is illegal, but they have been there for weeks now. We remain very firmly of the legal opinion that we have title to Marange," Tucker told Reuters.

"We are still in talks with the government, but we are 100 percent legal on this."

ACR is listed on the AIM market of the London Stock Exchange and is mainly involved in the exploration of gold in Zimbabwe, where two of its lead projects hold a resource of about one million ounces.

ZMDC spokesperson Pretty Murwrisi confirmed the minerals marketing firm had moved onto the Marange site.

"Everything is now under control and ZMDC has moved onto the site as we speak," Murwisi said.

Mugabe's government has proposed to localise at least 51 percent of foreign-owned mines, but is yet to finalise the empowerment legislation.

Analysts and industry players have said the proposals could hurt confidence in the sector, which has overtaken agriculture as the largest foreign currency earner and employer. - Reuters
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