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Minister Walter Chidhakwa

Oliver Kazunga Senior Business Reporter
MINES and Mining Development Minister Walter Chidhakwa says Treasury has so far received about $260 million in dividends over nine years from diamond companies operating in Marange, Manicaland province.

The government has a stake in all firms operating in Marange. Speaking in Parliament on Wednesday, Chidhakwa said the government has been receiving annual dividends from diamond miners in Marange since 2006 when the mineral was discovered.

“With regard to dividends which are declared by the companies, I want to advise this House that since the discovery of diamonds in Marange except in the case of Murowa, the dividends that were declared to Treasury amount to $259,452,422. This is the dividend that has been declared out of companies operating in Marange,” he said.

In recent years, he said, the dividends had declined in tandem with falling production and low sales.

On the merger of diamond companies, Chidhakwa reiterated that the consolidation of diamond miners in Marange was aimed at promoting accountability and transparency in the sector.

The consolidation of diamond firms in Marange would see the subsequent creation of the Zimbabwe Consolidated Diamond Company.

Mbada Diamonds, Marange Resources, Anjin, Kusena, and Diamond Mining Company Murowa are some of the companies earmarked for consolidation.

Chidhakwa said the merging of the diamond firms would not affect communities share ownership trusts adding that the merged entities would be subject to the laws of Zimbabwe in relation to the Community Share Ownership Trusts.

“Let me advise this House that the model that we’ve created for merging the companies must of necessity assume that the successor company must inherit both the assets and liabilities of the companies that are being merged.

“What that means is that if a company comes into the consolidated company, that company has assets and liabilities and has commitments that it has made.

“All these will be consolidated and brought into this one company. This one company must therefore, honour the commitments that were made by the successor companies.

“This company must, after being established, take care of communities in the same way if not better than what the individual companies were going to do,” he said.