Zim to nationalise diamond mines
Fin24

Zim to nationalise diamond mines

2015-03-12 19:06

Harare - The Zimbabwean government is set to nationalise all diamond mining companies into one consolidated mining company, a government minister has said.
 
The merged diamond company will include Murowa Diamonds, the only remaining Rio Tinto asset in Zimbabwe.
 
Mines and Mining Development Minister Walter Chidhakwa told a parliamentary committee on Youth, Indigenisation and Empowerment that all the miners have until Monday to accept the proposal.
 
He added that the government will hold 50% shareholding in a consolidated diamond mining company while the remaining stake will be shared among the six companies that are currently mining in Chiadzwa.
 
He said that since the companies had various shareholders they had been given a time frame which lapses on Monday.
 
“We gave them the opportunity to go back to shareholders to determine whether they will participate in the consolidation. They have until Monday to accept the proposal.
 
“Obviously, the most important part is the legal side. We will not violate their contracts; we want everything to be done to the satisfaction of all parties,” said Chidhakwa.
 
Chidhakwa said the consolidation of the operations is being done in terms of the Companies Act and all companies should oblige. He said the companies’ shareholding will be determined on the valuation of their equipment and size of operations.
 
He emphasised that it made a lot of business sense for miners to have an opportunity of becoming shareholders in a entity which owns all the diamond resources than to be shareholders, especially in the case of Murowa, in a company with a small concession. It is better to own 10% of an elephant than 100% of a rat. It will also enable the companies to comply with Indigenisation requirements.
 
The amalgamation of the local diamond industry is expected to increase accountability at the fields, estimated to hold the world’s largest diamond concentration.
 
Chidhakwa said experiences in Russia and Botswana had proven that engaging fewer diamond mining players refocuses attention to production.
 
Botswana and global mining giant De Beers operate a 50-50 joint venture Debswana which has grown to be the world’s largest diamond producer by value. In Russia, seven companies merged and formed Alrosa, now the leading international diamond producer by volume.

Comments
  • craig.taylor.7906 - 2015-03-12 19:22

    Tick tock, me thinks Zim government is running out of money.

      Michael Steynberg - 2015-03-13 08:54

      Haha ...and they think sticking their hands into the diamond mines are going to do what, exactly? Make them flourish? Make business BOOM? Sorry Mr. Mugarbage, you suck the life out of EVERYTHING and whateveryou touch turns to destruction and death. Keep your hands in your country, most of your people are already starving... But hey, that's the average African way isn't it ...Let's feast and grow fat while our voters STARVE TO DEATH! For some bizarre reason the average African government members and supporting voters are genetically programmed to self destruct. Might be nature's ONLY way to control their numbers?

      Theo Marx - 2015-03-13 11:36

      Zimbabwean Development Minister - no there's an oxymoron for you.

  • Stephan Coetzee - 2015-03-12 19:34

    The perfect model depends on who is in charge.... How are the other sectors faring where this gov is incharge?

  • Nico Louw - 2015-03-12 19:54

    " It is better to own 10% of an elephant than 100% of a rat " 100% of nothing is still nothing ! Good times are coming ....... enjoy the West are watching and we are laughing because we know something bob's comrats don't !

  • Martin Ledger - 2015-03-12 19:56

    Why anyone would do business in Zimbabwe is beyond me. Organisations are too greedy and don't do proper risk assessments. If this situation is in fact true

  • Ernie van Biljon - 2015-03-12 20:06

    Akuku, you are right, you are a bit kuku. I have finally worked out why Africa is called the cradle of mankind, because it has only produced infantiles! If this is where mankind started, then africa should have been eons ahead of the rest of the world in terms of development and technology, let alone culture and sophistication - yet nothing creative has ever come from Africa, except to blame others for their own shortcomings, inefficiencies and inabilities!

      Kersey van Niekerk - 2015-03-12 20:46

      Spoked wheels were already used as far back as 3,800 years. The blacks only saw it for the first time when the Voortrekkers moved inland.

      Tookie Angel Rakolote - 2015-03-13 01:47

      You people forget that Egyptians are African...

  • Caiphus Ndlovu - 2015-03-12 20:09

    when you have a plan you must stick onto it .even if people try to pull you down .one you will succeed

      Alan Baxter - 2015-03-12 21:38

      That is so devoid of logic. If your plan is umbahba, you'll get umbahba no matter how long you "stick onto it".

  • Kagiso Tshweu - 2015-03-12 20:10

    80% unemployment rate in Zim, when ever I read about such policies my response is...I hope they know what they doing. Idk what are the costs and benefits from a south african perspective. Lot's of Zim academics in SA who are very productive nd contributing to GDP growth, met one or two very intelligent Zim lectures in my tenure at varsity. But the spillover effect also comprises of lot's of low skilled zimbabweans who put a burden in the economy that is already struggling. Hence things like xenophobia has been on a rise. Many South African employers taking advantage though paying these Zimbabweans slavery wages maybe is better than nothing

      Riaan van Zuydam - 2015-03-12 21:08

      Kagiso please tell me you are not ANC or EFF. You think like somebody who should be starting our next political party. I cannot vote for a black man now as their are none that have our economy at heart only themselves. You could change that and make this country proud again.

  • a3a637f6-1c12-43b0-9f25-4a594f4473ff - 2015-03-12 20:12

    Zimbabwen government can seize as many companies and farms as they like but it will neva dig them out of their economic hole cos government will just ruin them aswel

      Nicolaas Blignaut - 2015-03-12 20:42

      Viva Rhodesia

  • Stephen Sage Wiseman - 2015-03-12 20:26

    They will close up shop and go

  • Phukza Tshwani Mogotsi - 2015-03-12 20:41

    Good for you Zim! !!!why not??

      Anthony Stewart - 2015-03-12 20:59

      Good for who?

      Craig Jenny Mackenzie - 2015-03-12 22:15

      Why not what?

  • Philani Jerome - 2015-03-12 20:53

    looks like Mugabe wants to die or retire as a billionar while his people starve flooding SA working for less than R50 a day

      Weetabix - 2015-03-12 21:07

      I wont let him retire, i will kick his milk delivery over, i will mix the days up in his weekly pill box, I will change the shoe polish he uses on his face from black to Dr Martin pink, I will put itchy powder in his bloomers and gladwrap his raised toilet seat. This m4ther4cker is gonna have a disrupted trip to Lucifers simbian machine.

  • Kersey van Niekerk - 2015-03-12 21:04

    Wayne Lombaard is jy nou 'n groot seuntjie omdat jy dieselfde storetjie ses keer plaas. Ag foeitog, gaan vra jou ma om jou in die kot te tel, jou bottel te gee en om Goue Lokkies vir jou te vertel

  • Thabo Solomon - 2015-03-12 21:30

    Let me process my artistic brain <@.@> . Um wow, that sound so strange !!

  • Ronny Dlamini - 2015-03-12 21:34

    Good idea, sinister intentions

  • Ronny Dlamini - 2015-03-12 21:35

    Good idea, sinister intentions

  • Mark Smith - 2015-03-12 21:35

    The Chinese are demanding more diamonds.

  • Aj Benzon - 2015-03-12 22:00

    Doesn't help that the person who's initiated the process's name means drunk in shona. Just like the whole mining situation, drunk lust and greed!

  • Etienne Rossouw - 2015-03-12 22:20

    Bob, you should read Ian Flemming's James Bond Diamonds are forever, follow the chain of diamonds then you would start to see that in the end it's not worth it & this will be the end of your rule, there are certain people you do not anger in this world, the Chicago families, (Read Bond Bob), Ukranians & those who control the diamond trade, I am afraid this move might just trigger your Worst fear Pal British Challenger tanks rolling up the streets of Harare.

  • Philip Mare - 2015-03-12 22:32

    I like how it is referenced as "a proposal" ... almoat like people have a choice.

  • Clayton Fletcher - 2015-03-12 23:10

    Mbhala my friend.I have very bad news for you.All the farms and all the mines and all this talk of taking stuff from white people is not for you or for any of the voters in the ANC.They will only take for themselves because all the african leaders are Greedy.So if I can give you some advise...Pray that they dont take the farms and the mines and whatever else they are planning because that is the day that all your brothers and cousins and family members will starve to death in this beautiful country that God put all of us to live in.You should rather hope that they give farms to farmers and mines to the people that can run it properly so that we can create jobs and food for our people.Yes I would also be mad because a lot of people make racial remarks but let God deal with them, black or white:Every knee shall bow one day my friend.So you better pray that the wrong people dont come into power because then you will see what suffering means.I believe you have not been to Zim.You should go and take a look.you wont believe how they are suffering their....Peace!!! A Farmer!!

  • Nicorien Le Roux - 2015-03-13 01:15

    Why do I smell Chinese food in the kitchen?

  • Mthokozisi Sniper Myende - 2015-03-13 03:43

    4ward With Nationalisation Of The Mines... Down With Inequality... Mining Shall Boost Your Reveneu

  • freeman.segapu - 2015-03-13 05:20

    I told you uncle bob is the man look now !!

  • Kelly O'Neill - 2015-03-13 07:31

    Blood Diamonds!!!

  • Bob Parnell - 2015-03-13 07:47

    By "nationalise" they actually mean ZANUPF'ISE

  • Phinda Shylock Buthelezi - 2015-03-13 10:01

    This is the best thing Zimbabwe will do for itself. South Africa must Nationalize our mines and form a state ran mining company that will create jobs and focus gains into stabilising the economy and fighting poverty. No one man/company must own a countries natural resources and they should be shared by the countries citizens

      Mzimasi Ndongeni - 2015-03-14 12:49

      Nationalisation should be seen in the context of a broad radical socio-economic shift from the neo-liberal framework toward a socialist alternative. Neither Zanu-PF nor the ANC has a political will to take this route.

      Zahir - 2015-03-14 16:55

      More money to be milked for mad dog bob

  • Moshibudi Makgoba - 2015-03-13 11:09

    Stupid Government led by stupid individuals.

  • Jono Bellingan - 2015-03-13 13:07

    HA!! Gaaaaaaaaayyy!!!!

  • Man Rand - 2015-03-13 14:22

    Ag shame, just when you think they've hit bottom they dig deeper. I'm now convinced some countries, like some individuals, only purpose in life is to serve as a warning for others....

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