Zimbabwe’s top diamond mining firms agree to become one entity

Zimbabwe’s leading diamond mining companies have agreed to be controlled by one firm, says a report.

A total of seven companies operating in Marange, including one wholly-owned by the state and Rio Tinto's (LON:RIO) Murowa mine, are likely to be folded into one entity, adds a report.

The said merger is aimed at bringing in more transparency and accountability in the sector — would enable miners to extract kimberlite diamonds, which are capital intensive, adds a report. The merger seeks to rescue the diamond industry in Zimbabwe as miners operating at Marange and Chiadzwa fields can’t any longer afford to dig any deeper for the precious stones.

The report further adds that most of the companies in Zimbabwe focus on alluvial diamond mining, which requires less capital as they are easily extractable through open cast mining. But the country has practically run out of alluvial gems deposits and existing miners argue they have neither the expertise nor the resources to search for new deposits underground. However, Zimbabwe still reportedly holds enough diamonds to meet about 25 per cent of the current global demand.