‘Govt awaits diamond miners decisions on merger’

via ‘Govt awaits diamond miners decisions on merger’ – NewsDay Zimbabwe November 30, 2015

GOVERNMENT is still awaiting decisions from diamond mining companies on whether they want to be consolidated into one entity or not, Mines deputy minister Fred Moyo told Parliament on Wednesday.

by VENERANDA LANGA

Moyo was responding to a question by Southerton MP Gift Chimanikire (MDC-T) who wanted to know if diamond mining companies had adhered to the policy.

In March, the Mines ministry announced plans to consolidate all diamond mining companies into one big firm, with the State owning 50% of the shares.

“The government position is that a decision has been made to consolidate diamond mining companies, not only in Chiadzwa, but all diamond mining companies in the country and the current position is that we have been consulting the companies so that this policy position is not implemented with attrition from a legal point of view,” Moyo said.

“We hope that all the companies will have held their annual extraordinary general meetings, so that we get a position as to whether they agree to consolidate or not.

“For those who would have decided that they do not want to consolidate, then obviously, we will engage them with regards to how we are going to deal with their position going forward.”

Moyo said at the moment, a few companies had conducted their extraordinary general meetings and it was difficult to disclose the outcome of their decisions.

“It is also important to note that almost all these companies had their agreements with ZMDC [Zimbabwe Mining Development Corporation] and their operating licences had expired. So that is the other complication that we have, but we will be able to apprise this House on this important matter once development has unfolded.”

Musikavanhu MP Prosper Mutseyami then said Moyo should explain if diamonds were still being mined in the country, bearing in mind that all the licences for diamond mining companies in Chiadzwa have expired.

“Some mining is still taking place in Chiadzwa for those companies whose licences are in order. For those companies whose licences have expired, obviously the law would not allow them to continue operating,” Moyo said.