Zimbabwe Government Seizes Marange Diamond Mines

Sidestepping a legal battle, Zimbabwe’s Mining Development Corporation (ZMDC), a government-owned company, has seized control of diamond exploration in the country’s Marange district. The company is also ascertaining the quality of the mineral.

The takeover is being challenged in local courts by African Consolidated Resources (ACR), a British-owned concern that has explored the area and found the diamonds before their exploration license was canceled by the government.

The company’s position has been strengthened by a legal opinion issued by the Zimbabwe Attorney General’s Office calling the takeover into question.

Zimbabwe’s Mines permanent secretary Thabani Ndlovu told local media that the seizure of the mines was a “matter of national interest and that Zimbabwe was entitled to the full benefits of her resources.” Government mining officials said ACR had no legal title to the diamond claims, leaving ZDMC the rightful owners.

"The ZMDC has begun trial mining for alluvial diamonds and are also recovering some diamonds from their pilot mining," said Ndlovu.

Impoverished Zimbabweans hoping to strike it rich have been flocking to the area since diamonds were discovered there last year. The military has sealed the area to prevent spiraling illegal mining and stem the loss of foreign currency which to date has been estimated at $400 million.

Zimbabwe says a revised mining and minerals bill will soon be presented to the country’s parliament for approval, sparking fears that foreign companies will be forced to surrender 51 percent of their equity to locals as part of Zimbabwe’s nationalization campaign.

The Mines Ministry awarded the Minerals Marketing Corporation of Zimbabwe three special grants to explore diamonds in Marange after invalidating ACR's titles, later ceding the claims to ZMDC.

According to observers, Zimbabwe’s government desperation to raise foreign currency to buy essential goods like fuel is behind the Marange takeover.