eBusiness Weekly
Tapiwanashe Mangwiro
Vast Resources announced they are pausing negotiations on a mining agreement with Zimbabwe Mining Development Corporation on the Community Diamond Concession in the Marange Diamond Fields until they retrieve their diamonds held by the Reserve Bank of Zimbabwe (RBZ).
In February this year, the company said the High Court of Zimbabwe ordered the release of its 129 400 carats of rough diamonds, which have been in the custody of the RBZ since 2010.
The settlement process was poised to be completed by the end of April or the early half of May this year.
Vast Resources chief executive officer, Andrew Prelea, said in March: “The settlement is following the path of consensual due process and we appreciate the government’s continuing assistance in bringing this matter to a close.”
The loot has not been released to date and the company in a trading update said it will not continue with their investment till they get hold of their diamonds.
“In Zimbabwe, the company is preparing for the release of its diamonds previously mined by the company and preparing for their marketing,” the company said in a trading update.
“Upon the finalisation of the process the company will recommence its focus on the finalisation of the mining agreement on the Community Diamond Concession in the Marange Diamond Fields.”
“First quarter production has seen a significant increase both in mining and in concentrate production as a result of the changes that have been implemented on site during the second half of 2022, and the ongoing upgrades and further development underground,” said Prelea in a statement.
Vast had been in a legal battle over custody of the referenced parcel of diamonds for several years. “Once the remaining legal and administrative work is finalised, Vast will be able to refocus on other opportunities in Zimbabwe,” Prelea added.
Vast is currently in the finalisation stage of a joint venture mining agreement on the Community Diamond Concession, Chiadzwa, in the Marange Diamond Fields.
Prelea when the judgement came in February said; “Despite taking longer than anticipated, I am very pleased to announce that after many years of hard work and discussion with the Zimbabwean government the matter regarding the release of the Historic Parcel has now been amicably settled in a manner supported by an Order of the High Court of Zimbabwe.
“This demonstrates the Zimbabwe government’s commitment to resolving legacy issues related to investment in Zimbabwe in a transparent and legal manner for the mutual benefit of investors and the country and we now look forward to the releasing of the historic parcel to the company.”
The competitiveness of doing business in the mining sector has been negatively affected by the high cost of doing business in the southern African nation coupled with high-cost drivers, poor infrastructure, unrealistic foreign currency controls accelerated by forex receipts retention, high tax burdens and policy flip-flops.
Zimbabwe is envisioning a US$12 billion mining industry starting this year, of the US$12 billion, gold, platinum diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively.
Chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same.
Lithium at US$500 000 while other minerals will constitute US$1,5 billion.
