Zimbabwe to Cut Firms in Marange Due to Revenue Irregularities

(IDEX Online) – Zimbabwe aims to reduce the number of companies operating in the Marange diamond fields to just one or two from seven by the end of the year because they have failed to properly account for revenue, Mines Minister Walter Chidakwa said.

Companies owned by Chinese, South African and local investors operate in the area.

Work has already started to evaluate equipment and staff at the fields in the east of the country, Chidakwa said this week, in comments cited by AllAfrica.com.

"When you restructure, one way or the other you have to take into account the number of people employed and evaluate the equipment that is being used," Chidakwa said. "We have invited representatives of the mining companies to discuss the policy direction we are taking."

A parliamentary committee last year reported that tens of millions of dollars of revenue due to the government never arrived.

The committee said the government received just $41 million in revenue in 2012.

Zimbabwe is expected to mine 16.9 million carats of diamonds this year, according to Mines Ministry estimates. Last year, the country produced eight million carats, generating $685 million in sales.

NGOs, such as Partnership Africa Canada, have accused the ruling Zanu PF party of looting about $2 billion from Marange, partly to finance the country's military. The party denies the claims, saying the European Union's decision last September to lift sanctions on diamond exports showed that operations were above board.

State-owned Zimbabwe Mining Development Corporation (ZMDC) operates the fields in separate joint ventures with Mbada Diamonds (Pvt) Ltd., Anjin Investments Ltd., the Diamond Mining Co., Gye Nyame, Jinan Mining (Pvt) Ltd. and Kusena. ZMDC is also active in the area through its wholly owned Marange Resources subsidiary.

Government representatives will meet with Anjin next month, while Diamond Mining Co. and Jinan have asked for more time, Chidakwa said. Legal issues have to be addressed, he said.

ZMDC Chairman David Murangari, who was appointed on March 31, declined to comment as he and his board were "trying to acquaint ourselves to the organization and its operations," he told AllAfrica.com.