Zimbabwe Minister: 'Marange Diamond Firms Tricked Govt'

Mining and Exploration
15/10/2015 15:00

Diamond mining companies in Marange misrepresented their investment plans to the state and did not invest the amount of capital they agreed on with the government when the parties signed an agreement to create a joint venture that would be 50 percent owned by the government and the rest by the firms, according to Mines and Mining Development Minister Walter Chidhakwa.

After mining diamonds close to the surface, the mining companies have not invested in underground exploration in order to extend the life of the mines, leading to a sharp reduction in revenue for the government. The firms also misrepresented the amount they invested in mining equipment and machinery, leasing equipment rather than purchasing it.