Zimbabwe’s New Diamond Policy Offers More than 49% foreign ownership

The Zimbabwe Government has approved the Zimbabwe National Diamond Policy which is expected to regulate the diamond mining sector and ensure accountability in the mining, processing and selling of the precious mineral, says a News report.

The report further mentions that the policy will see only the Zimbabwe Consolidated Diamond Company (ZCDC), Murowa Diamonds and two other companies to be approved by Government undertaking diamond exploration and mining in the country.

Briefing journalists after the Cabinet meeting, Information, Publicity and Broadcasting Services Acting Minister Mangaliso Ndlovu said the policy covers all stages of the diamond value chain, namely exploration, mining, processing, valuation, marketing, beneficiation, value addition as well as issues of security and law enforcement.

Outlining the key features of the policy, Minister Ndlovu was quoted by the News report: “Any other entity or person with diamond mining title shall approach any one of the four approved companies for joint venture arrangements.

“Government through ZCDC shall be the 46 per cent and the local Community Trust — the 5 per cent indigenous partners of any foreign investor who intends to undertake diamond mining activities in Zimbabwe. Government may waive that local ownership threshold subject to satisfactory submissions and due diligence. All rough diamonds produced from all diamond mining operations shall be submitted to the Diamond Value Management Centre to be established by the ZCDC for cleaning, sorting and valuation save for Murowa Diamonds.”

Minister Ndlovu was quoted that the private players will participate in value addition after cleaning and sorting and after obtaining the necessary approvals.

The minister further added that 10 per cent of diamonds will be reserved for local value addition.