African Consolidated Resources to Construct Marange Diamond Processing Plant

African Consolidated Resources Plc (ACR) plans to build a diamond processing facility to process diamonds mined from Zimbabwe’s Marange fields, the Zimbabwe Guardian reported. The plant is expected to begin operating in August.

ACR, a London-based and AIM listed Zimbabwean minerals exploration company, is working to form a joint venture with the government to be allowed access to the diamondiferous Marange area, in accordance to a new law that requires 51 percent of mineral mining companies to be owned by Zimbabwean natives.

ACR previously mined diamonds in Marange but was dislodged from the area in late 2006 when thousands of unlicensed and illegal miners (commonly referred to as “diggers”) entered the area searching for diamonds.

The police then closed off the area, fearing the loss of unpaid royalties for the goods if they were smuggled out of the country. A license to mine Marange, according to the Guardian, was granted subsequently to the state-owned Zimbabwe Mining Development Corp.

ACR, which also mines gold and nickel, has commented that, once it receives permission to mine diamonds in Marange, it will “aggressively pursue the exploitation of that deposit as a priority.”