Africa Moyo Senior Business Reporter
Government has identified Alrosa Diamond Company and Anjin Investments as the foreign firms that will participate in the country’s diamond sector.
The Zimbabwe National Diamond Policy, which was approved by Cabinet on December 4 last year, says the Zimbabwe Consolidated Diamond Company (ZCDC), Murowa Diamonds and two other companies, would be permitted to undertake diamond exploration and mining.
On Tuesday, Presidential spokesperson Mr George Charamba said: “ . . . the President has put the Zimbabwean interest at the heart of exploitation of those diamonds only accepting foreign participation by way of selecting companies from Russia (Alrosa) and China (Anjin).”
Anjin previously mined diamonds in the country until late in 2015 when Government did not renew operating licences so diamond miners such as DMC, Kusena, Mbada Diamonds, Gye Nyame and Marange Resources.
During the time it hauled diamonds in Zimbabwe, Anjin embarked on a number of infrastructure developments including the construction of the Zimbabwe National Defence University, the Longcheng Plaza and Golden Peacock hotel in Mutare.
The company owns another Golden Peacock hotel in Harare’s leafy suburb of Borrowdale.
Anjin currently employs over 150 people in the country.
Alrosa is a Russian group of diamond mining companies that specialises in exploration, mining, manufacture, and sale of diamonds.
The company, which was formed in 1992 and employs about 40 000 people across the globe, says it leads the world in diamond mining by volume. Alrosa generated revenue of $4,63 billion in 2017.
President Mnangagwa met Alrosa officials in Moscow, Russia, recently during a State visit to the Eastern European country.
The Cabinet yesterday approved the Zimbabwe National Diamond Policy, which is expected to regulate the diamond mining sector and ensure accountability in the mining, processing and selling of the precious mineral. The policy also covers all stages of the diamond value chain, namely exploration, mining, processing, valuation, marketing, beneficiation, value addition as well as issues of security and law enforcement.
According to the policy, “any other entity or person with diamond mining title shall approach any one of the four approved companies for joint venture arrangements.”
“Government through ZCDC shall be the 46 percent (shareholder) and the local Community Trust — the 5 percent indigenous partners of any foreign investor who intends to undertake diamond mining activities in Zimbabwe.
“Government may waive that local ownership threshold subject to satisfactory submissions and due diligence. All rough diamonds produced from all diamond mining operations shall be submitted to the Diamond Value Management Centre to be established by the ZCDC for cleaning, sorting and valuation save for Murowa Diamonds.”
Private players are allowed to participate in value addition after cleaning and sorting, and after obtaining the necessary approvals.
The policy also says 10 percent of diamonds will be reserved for local value addition.
The Zimbabwe Diamond Policy, which is a result of intense consultations involving Government and stakeholders, came up after loopholes which made it inadequate to effectively regulate in the face of emerging developments and new dynamics, were noted.
Source : The Herald