By Business Reporter
HARARE (Mining Index) – CABINET has approved the much awaited National Diamond Policy, giving only four companies rights to explore and mine diamonds in Zimbabwe.
The Zimbabwe Consolidated Diamond Company (ZCDC), Murowa Diamonds including two other companies, yet to be named will be mandated to explore and mine diamonds in the country.
ZCDC was formed in 2016 after government withdrew mining licences for Anjin, Mbada Diamonds, Marange Resources, Diamond Mining Company (DMC), Jinan, Gye Nyame and Kusena whose diamond mining licences had expired in 2015.
In a statement, acting Minister of Information, Publicity and Broadcasting Services, Mangaliso Ndlovu revealed the new National Diamond Policy will cover diamond “exploration, mining, processing, valuation, marketing, beneficiation, value addition, as well as the issues of capacity building, security and law enforcement.”
The policy further alluded that “any other entity or person with diamond mining title shall approach any one of the four approved companies for Joint Venture arrangements.”
Below are some of the highlights of the new National Diamond Policy: –
- Government through ZCDC shall be the 46% and the local Community Trust – the 5% Indigenous partners of any foreign investor who intends to undertake diamond mining activities in Zimbabwe.
- Government may waiver that local ownership threshold subject to submission of satisfactory submissions and due diligence.
- All rough diamonds produced from all diamond mining operations shall be submitted to the Diamond Value Management Centre, to be established by the ZCDC for cleaning, sorting and valuation, save for Murowa Diamonds.
- Private players shall participate in value addition after cleaning and sorting upon obtaining the necessary approvals.
- 10% of diamonds shall be reserved for local value addition. ENDS//