Government is set to pay Russian firm, Development Trust of Zimbabwe (DTZ)-OZGEO, US$5.4 million to take over the diamond mining concession in Marange.
Minister of Mines and Mining Development Walter Chidhakwa told ZBC News that other mining companies have dropped legal proceedings against consolidation which gives the Zimbabwe Consolidated Diamond Company (ZCDC) a chance to recapitalise its operations. Anjin, a joint venture with Chinese military interests, had since lost its case, while Mbada Diamonds received temporary relief to secure its properties although it was yet to get a final judgement on the matter.
The Financial Gazette last month reported that DTZ-OZGEO signed a memorandum of understanding with government after talks in March involving Russian investors in the company and officials from the Mines and Mining Development Ministry. The DTZ-OZGEO concession will be taken over by ZCDC, which will be owned 50 percent by government, while companies giving up their mining properties to the company will share the balance. In terms of the agreement, ZCDC will take over the diamond concession situated in the Taka forest in Chimanimani.