Nine diamond miners have been ordered to wind up operations following expiry of their licences by the government in Zimbabwe.
The companies were mining the Marange diamond fields in the east of the country and had resisted a proposal to consolidate operations under one company.
It’s been almost a decade since the discovery of Zimbabwe’s Marange diamond fields. They were believed to hold 30 percent of global diamond deposits and were tipped to inject new life into the economy, but the precious stones haven’t brought much sparkle.
The Zimbabwe Environment Lawyers Association has been at the forefront of calling for reforms in the sector. It’s welcomed the announcement saying government can now make a fresh start.
Negotiations over the merger have been on for the last seven months, during which the operating licences for the 9 firms have expired. Failure to make a breakthrough has prompted government to take the drastic measure.
Government will have a 50 percent stake in the merged entity allowing it closer surveillance, which should see more revenue reaching the national fiscus.
The affected mining houses are yet to issue an official response but there have been some reports they could be mounting legal challenge. Reason for government to take extra care even as it makes good on plans to bring all operations under one roof.
