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Minister Chidhakwa

Golden Sibanda Senior Business Reporter
A BELGIAN court will today decide on an order obtained by South African firm Amari Platinum, seeking to attach proceeds of 500 000 carats of rough diamonds seized in Belgium.

Mines and Mining Development Minister Walter Chidhakwa confirmed on Tuesday that a Government team would attend a court hearing on the $45 million gems attached by Amari in Antwerp.

Minister Chidhakwa, who could not elaborate on the issue said “the hearing is on the 6th of this month (today)” to determine the fate of the diamonds attached on spurious grounds.”

South African company Amari Platinum obtained an ex parte order to seize the proceeds of diamonds that were on auction in Antwerp over disputed cancellation of its platinum claims in 2010.

Former mines minister Dr Obert Mpofu cancelled the South African company’s platinum mining rights over delays in working the claims in line with Government’s use it or lose it policy.

Twelve former commercial white farmers have also approached the European Court in Belgium seeking to attach the proceeds from the same diamonds auctioned in Belgium after Government compulsorily acquired their farms under the Land Reform Programme to resettle landless indigenous blacks.

The diamonds sold in Belgium belonged to Mbada Diamonds, Marange Resources, Diamond Mining Company and Jinan. Amari’s position is unsustainable at law since the entities have separate legal personas registered under the Companies Act.

Amari’s claim arises from an International Court of Arbitration award against Zimbabwe Mining Development Corporation, which is erroneously contending that no mining entity can mine diamond except ZMDC and therefore the diamonds sold in Belgium belong to ZMDC. However, this is being challenged in the city of arbitration Lusaka, Zambia High Court.

ZMDC is a creature of statute. Commercial invoices and export documents of record of these diamond shipments demonstrate, without ambiguity, that these diamond companies were and are acting as separate entities, according to Resource Watch chairperson Mr Tafadzwa Musarara.

The legal challenges recently encountered in Belgium have compelled Government to fast track setting up an international diamond buying centre in Harare. The centre has been housed at Minerals Marketing Corporation of Zimbabwe.

The outcome of the court case in Belgium will have profound implications on other commercial Government transactions across the world, especially the potential to open a flood of similar unjustifiable litigations.

Zimbabwe is estimated to have potential to supply at least 25 percent to 30 percent of diamonds sold on the international markets.