New diamond policy on cards

GOVERNMENT is working on a new diamond and platinum mining policy to replace the 51-49 percent shareholding requirement that regulates the two minerals.

The policy, which was removed a few months ago on other minerals and sectors of the economy, is said to be too restrictive and affecting the two minerals’ contribution to the economy.

Speaking to investors in Anhui yesterday, President Mnangagwa acknowledged that the old policy impacted negatively on diamond and platinum performance, hence the need for an urgent review.

This would help create a winwin situation in the lucrative mining sub-sectors.

“Very soon we should be able to come up with a new policy to govern these two,” he said.

The President said as a result of this requirement in the indigenisation policy, Government had closed six companies that operated in Chiadzwa a few years ago.

This caused a furore in the sector as the firms felt hard done by the measure.

Anjin - a joint venture company between Anhui Foreign Economic Construction Corporation (AFECC) and the Defence Industries, yesterday appealed to President Mnangagwa to be allowed to come back into Zimbabwe.

Company representatives said Anjin was keen on coming back into the diamond sector.

It operates a nickel mine in Zimbabwe.

When President Mnangagwa assumed power last November, he reviewed the 51-49 percent requirement saying this was affecting investment into the economy.

The development was immediately welcomed by investors who saw the softening as a positive move by Zimbabwe in its quest to lure investors.

Over the past four months, the new dispensation has been seized with improving Zimbabwe’s ease of doing business. Resultantly, more than $7 billion worth of investment has come Zimbabwe’s way.

The diamond sector has ignited a lot of controversy with fears that Zimbabwe could have lost a lot significant amounts of money.

Over the past few weeks, President Mnangagwa has appealed to investors to venture into the mining value chain, among other opportunities set to transform the economy.