The Sunday Mail
GOVERNMENT will this week finalise the merger of three diamond mining companies in Chiadzwa to improve accountability and save some of the entities from collapsing.
Mines and Mining Development Permanent Secretary Professor Francis Gudyanga said his boss — Minister Walter Chidhakwa — would meet representatives of Marange Resources, Kusena Diamonds and Gye Nyame tomorrow.
He also said there was no basis to claims that the Chiadzwa diamond fields had been exhausted as comprehensive exploratory work had not been done.
Monday’s meeting is part of the process to finalise merger of diamond miners in Chiadzwa.
The merger has been motivated by the need to engender accountability in exploitation of the fields and to assist operators there remain afloat.
Prof Gudyanga said, “We are going to meet on Monday to finalise some of the modalities on how we are going to merge. I am sure in the next week or two we will be announcing the new arrangement because we are almost done.”
He dismissed reports that diamond reserves in Chiadzwa were dwindling, arguing that there had never been exploration to determine the real state of affairs.
Prof Gudyanga said most diamond miners had not invested in kimberlitic pipe exploitation, save for Mbada Diamonds.
Seven companies are operating in Chiadzwa and most of them are struggling to retain viability as they geared their operations towards exploitation of alluvial diomonds, which are easier to mine.
Merging of the companies has been hamstrung by the various agreements Government, through the Zimbabwe Mining Development Corporation, signed with its joint venture partners.
Minister Chidhakwa has said the merger will be structured such that international investors are no prejudiced.
One of the mining companies, Gye-Nyame declared insolvency after one of its investors pulled out after being fingered in an alleged corrupt case.
