HARARE Zimbabwes government is now considering auctioning parts of the Chiadzwa diamond field to firms that have applied to mine in the area, senior government sources said last week.They said the government was in quandary because not all of Chiadzwa (also known as Marange) has been surveyed to establish the value or size of deposits vital information that the state would need to know to be able to set prices for the various portions of the field to be auctioned.
“We are thinking of auctioning the Chiadzwa diamond fields,” a senior government official said, speaking on condition that his name was not published.
“The problem is that we do not know the value of the diamonds there. The major problem with Chiadzwa is that other parts of the area have diamonds and one area has nothing, so how do you put a proper valuation of the gems there?”
Currently two firms, Canadile Miners and Mbada Investments, are operating in the diamond fields in joint ventures with the governments Zimbabwe Mining Development Corporation (ZMDC) in line with Kimberley Process (KP) standards.
Each firm is said to be using just 1 000 hectares of the 69 000 hectares the ZMDC has in Chiadzwa.
The source said government had received applications from 20 firms to operate the mining fields.
“There is a feeling that although we have shortlisted four firms out of 20 that have applied, if we auction off the area there could be more revenue for the state,” the official said.
“However our biggest worry is that we do not know the value of the diamonds that in Chiadzwa.”
Most of the diamonds in Chiadzwa are classified as alluvial diamonds. Mines Minister Obert Mpofu was not immediately available for comment.
Chiadzwa is one of the worlds most controversial diamond fields with reports that soldiers sent to guard the claims after the government took over the fields in October 2006 from British-based Africa Consolidated Resources that owned the deposits committed gross human rights abuses against illegal miners who had descended on the field.
Human rights groups have been pushing for a ban on Zimbabwean diamonds but last November, the country escaped a KP ban with the global body giving Harare a June 2010 deadline to make reforms to comply with its regulations.
Post published in: Economy