Zim forms Consolidated Diamond Company as merger is set for year end
GOVERNMENT is set to call for an extra-ordinary general meeting with Marange diamond companies in order to chat the way forward for the consolidation and subsequent merger of the seven miners.
Seven companies operating in Marange namely Mbada Diamonds, Anjin, Marange Resources, Gye Nyame, Kusena, Jinan and the Diamond Mining Company are set to merge into one entity where Government will hold 50 percent shares.
Mines and Mining Development Minister Walter Chidhakwa told journalists that consolidation of the companies would continue despite the resistance and uncertainties associated with the move.
“The companies will continue to be consolidated. I have made a strong plea to them. There are resistances here and there, uncertainties here and there but I want to communicate that we are not stopping,” he said.
Chidhakwa said his Ministry had established one company which would mine diamonds at Marange.
“What we have done now is to establish a company called Zimbabwe Consolidated Diamond Company. We are awaiting the appointment of directors and as soon as they are appointed we will then expect that all companies after their extraordinary general meetings will come in and those that do not want will follow a different route,” he said.
He said the government as a 50 percent shareholder through Zimbabwe Mining Development Corporation (ZMDC), had called for an extraordinary general meeting with the companies.
“So we have called and invited our partners to the meeting. There are two matters to be discussed on the agenda, the financial statements of these companies. We want to see audited financial statements for our diamond companies and we want them to respond to the government call for consolidation,” he said.
At the EGM, he said the companies would vote and come up with a decision.
“But commercial decisions by companies do not have the effect of changing Government policy. And our position is that Government has enunciated a policy, and that policy is that we will have one diamond mining company in this country,” he said.
“And therefore if the decision by a commercial entity is that we will not participate in this one entity then I think it will be time to bid each other farewell,” he added.
Chidhakwa said the ZMDC would hold EGMs with each of the companies during the first two weeks of August.
Meanwhile, Chidhakwa has announced a 13 member Pan African Minerals University and Technology founding board chaired by Professor Robson Mafoti.
The university, to be housed at the Scientific and Industrial Research and Development Centre (SIRDC), will be established with the aim of attracting experts to research on African minerals.
The university will be housed at the Scientific and Industrial Research and Development Centre (SIRDC) and will be established with the aim to attract experts to research on African minerals.
Chidhakwa said mining companies in the country will contribute towards the development of the university as it will benefit them. Other funding is going to come from the Minerals and Marketing Corporation. -FinX