BREAKING NEWS: Diamond mines ordered to close shop

Mines and Mining Development Minister Walter Chidhakwa addresses a press conference while flanked by permanent secretary Professor Francis Gudyanga and Home Affairs Minister Ignatius Chombo. Picture by Lloyd Gumbo

Mines and Mining Development Minister Walter Chidhakwa addresses a press conference while flanked by permanent secretary Professor Francis Gudyanga and Home Affairs Minister Ignatius Chombo. Picture by Lloyd Gumbo

Lloyd Gumbo Senior Reporter

Government has ordered all diamond mining companies to stop operations forthwith.

Mines and Mining Development Minister Walter Chidhakwa announced the development this afternoon in the presence of officials from the affected firms.

He said the mines had declined to be part of the consolidated diamond mining company despite Government inviting them, adding that the firms had not renewed their licences.

Details to follow…

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  • Hlahla Hamburamatope

    We hope ALL operations including those being done by soldiers and police clidestinely or otherwise and this time invite all local geologist to come up with a strategy that is Zimbabwean, then capacitate them with tech n machines

  • Nyamasvisva

    We have plenty other resources- gold, copper, platinum, uranium, methane gas, tin, nickel, iron , shiri, nyoka et al. We just have to focus on those that yield best results per unit effort.

    • Tapfumaneyi

      Who is this big “WE” prepared to invest billions in extracting raw minerals in a depressed world market, and even more billions for “beneficiation” of products before export? We’ve just seen the diamond companies aren’t eager to play ball with imposed Government terms and conditions, and Minister Zhuwao’s 51% plus his extra 10% levy on companies already operating at a loss is unlikely to interest any foreign investors. What multinational mining market expertise and how much spare change have you got in your pocket towards the missing billions required?

  • dedz

    much ado about nothing

  • kutototo

    ZIMASSET at work, gore rino ndere bhora mberi bedzi.

  • succuba

    Nothing more to loot then?

    • g.d

      Obese looted all

  • Rawboy

    What about the employees?

  • Fred Muchena

    oh no. but why

  • Tom Toms

    This rubish, no serious investor would agree to that.

  • thats me

    Ayas inenge nyika yemahumbwe

  • Justice

    Most likely this noble move will improve accountability of our precious minerals because the Marange diamond mining and exporting system had a lot of fissures.

    • Collin Mackenzie

      Totally agree with you, these mines have added no true value to Zimbabwe.
      Most of the top jobs are held by Southern African whites and they even subcontractors are from South Africa.

      They must go mine in South Africa.

  • jacktheswede

    Talk about rushing to close the gate after the horse has bolted! They have had their fill these leeches.

    • Collin Mackenzie

      Totally agree
      There has been no accountability

  • Realest Negus Living

    Well the government should have formed a single diamond mining company when diamonds were first discovered and enaged in a joint venture basis like the Debswana example next door. Actually now that we link up the dots, its probably related to the recently gazetted joint venture legislation. I foresee the government announcing a new technical partner in the amalgamated diamond company. I wonder who they will go with. De Beers probably isn’t an option given the political complexities around it, perhaps it will be a proxy of DeBeers or perhaps a Russian company…

    • jacktheswede

      If we had gone the Debswana route, our economy will be thriving for sure because there is no loophole or snout dipping with the systems and structures they have set up. Thats the very reason that was never on the table of course!

  • Bert

    Lol great way to attract foreign investment, especially when we need it. Greedy shortsighted policies like these need to stop before its too late.

  • Judas Iscariot

    The real reason why they’re refusing to renew their business licences,is because There’re no more diamonds left. Now they don’t have to worry about giving workers retirement packages. They’ve nothing to lose.

    • rukudzo

      Your point could be valid. They will say government stopped us to operate so no terminal benefits.

      • SimonPetere

        Which leads to yet another question; who owns the diamond mines

    • yowe

      Thats true they made millions if not billions in Obama Dollars they dont care anymore they will gladly close shop. Besides this stupid broke government wants 51% of the amalgamated company so who in their right mind would cede assets???. Look East yaramba varume hahha we cant look west anymore who is kuNorth???

  • yowe

    Are they sure they want to do this to the Chinese??? Hehehe these fools ran to a worse devil nhasi makuchema hahahaha. Pane akambowona muChinese mubank here depositing or withdrawing money, maTM or OK buying food, has anyone met a Chinese who built a house here??? Those people are not good kugona chihure chete mumabhawa avo paLong Chen an illegal structure if ever there was one YOWE

  • yowe

    It has no effect they werent paying propotional taxes, and their workers have not been paid for months plus they were selling diamonds on the parallel market so from the start we never realised the fair value of the goods. A situation which our friends from the East loved. A few Zanoids benefited. So kuvhara kwavo is of no consequence. Biti asked about mari iyi when he was Finannce Minister years back and he was ridiculed. God blessed us and the blessing was stolen!!!

  • SimonPetere

    Kkkkkkk zvakaoma. .kupererwa here kana kuti it’s panicking

  • Gushungo WekuGP

    Can we recover on behalf of the workers the millions of rand spend in Durban by one director of these mines?

  • Observer gonzo

    Is marange resouces which is 100% owned by the state and directly supervised by chidhakwa through the perm sec doing any better in terms of transparency, accountability and contributing anything to the fiscus?

  • Harare

    it could be a very good move it depends how its handled, the intentions and the implementation of those intentions.Becoz these diamonds are benefiting only the foreign firms mining them

  • Rawboy

    Indeed! I grew up on a mine during the 70s. Patchway in Golden valley to be precise.Had it’s own clinic where my parents worked that also provided healthcare for the local non mining community.And the infrastructure on that mine was quite impressive.Hundreds of people worked there..Most of them were Manyasarandis though! The thought of a mine like that being arbitrarily closed forthwith by some government edict sends shivers up my spine.

  • Realest Negus Living

    You are oversimplifying things my friend. There is nothing wrong or new about state involvement/investment especially in extractives.
    1. South Africa – Sasol
    2. Botswana – Debswana
    3. Mozambique – Petromoc
    4. Singapore – Temasek, GIC
    5. Bangladesh – PetroBangula
    6. Colombia – Ecopresso
    7. Denmark – Dong Energy
    8. Finland – Altia
    9. Germany – Bertelsmann
    10. Indonesia – Krakatau Steel
    11. Israel – Ammidar
    12. Brazil – PetroBras, Vale
    ..and the list goes on.
    Your argument should not be framed as a generalisation that governments should not be involved in investing in the mining or other sectors. Your argument should be that the government should be engaging in ventures with partners with the skill and expertise they can bring in. The government also needs to strengthen the corporate governance code for the country and ensured it is adhered to. Don’t make emotional and short sighted decisions especially with regard to our finite resources.

    • Cecil Roars

      Sasol privatized in 1979. It is not a state entity.

  • David

    This decision seems rushed to coincide with the arrival of the IMF SMP Review Mission. This method of dealing with the diamond industry will have disasterous effect on future FDIs , the Chinese Mega deals and the Russian deal. This is tantamount to nationalisation of diamond mines. Without respect for the Rule of Law and Property rights Zimbabwe can forget about FDIs.