New Zimbabwe.com

Diamond firms merger completed by year-end, says mines minister

THE ongoing merger of diamond mining companies operating at Marange in Manicaland will be completed before the end of this year, Mines Minister Walter Chidhakwa has said.
Government wants the seven companies mining in Marange – Mbada Diamonds, Anjin, Marange Resources, Gye Nyame, Kusena, Jinan and the Diamond Mining Company – to merge into one entity in which the State will hold a 50 per cent equity stake.
Chidhakwa told journalists Monday that consolidation of the companies would continue despite resistance and uncertainties associated with the move.
“The companies will continue to be consolidated. I have made a strong plea to the companies. There are resistances here and there, uncertainties here and there but I want to communicate that we are not stopping,” he said.
Chidhakwa said his ministry had established one company which would mine diamonds at Marange.
“What we have done now is to establish a company called Zimbabwe Consolidated Diamond Company.
“We are now just awaiting the appointment of directors and, as soon as they are appointed, we will then expect that all companies after their extraordinary general meetings will come in and those that do not want will follow a different route,” he said.
The minister said the government, as a 50 per cent shareholder through Zimbabwe Mining Development Corporation (ZMDC), had called for an extraordinary general meeting (EGM) with the companies.
“So we have called and invited our partners to the meeting. There are two matters to be discussed on the agenda, the financial statements of these companies.
“We want to see audited financial statements for our diamond companies and we want them to respond to the government call for consolidation,” he said.
At the EGM the companies would vote and come up with a decision.
“But commercial decisions by companies do not have the effect of changing Government policy. And our position is that Government has enunciated a policy, and that policy is that we will have one diamond mining company in this country,” he said.
“And therefore if the decision by a commercial entity is that we will not participate in this one entity then I think it will be time to bid each other farewell,” he added.
Chidhakwa said ZMDC would hold EGMs with each of the companies during the first two weeks of August.Advertisement