Diamond Wrangle: End in Sight after 14 Years
October 23, 24
(IDEX Online) - The UK miner Vast Resources appears to have finally secured the release of a parcel of 129,400 carats of rough diamonds that have been held at Zimbabwe's central bank since 2009.
"The Attorney-General's Office has approved the terms of a settlement agreement relating to the historic claim and has recommended this to the relevant governmental institution for signature in order to resolve this longstanding matter," it said in a corporate update on 10 October.
"Accordingly, the fully executed settlement agreement is currently awaited to enable the company to complete the process of recovery."
It did, however, caution that settlement of the long and complex legal wrangle over the diamonds had yet to be signed.
"Shareholders will be advised of further developments," it said, "but shareholders are also reminded that whilst the board remains confident, there can be no guarantee of a successful outcome."
The diamonds were "surrendered as evidence that the mining firm had exploited diamonds on claims previously owned by De Beers," according to the business weekly Zimbabwe Independent.
De Beers left the Marange diamond fields in 2006, claiming it had failed to find viable reserves, after a decade of exploration.
Vast Resources (then known as African Consolidated Resources) subsequently discovered massive alluvial diamond deposits there, which prompted the Zimbabwe government to revoke its mining licenses within months, and evict it.
We approached Vast for comment.
Generic pic of rough diamonds.