Published by the government of Zimbabwe
12 November 2009
Harare — SOUTH African scrap metal company, New Reclamation Group Limited, owned by Old Mutual Plc, is seeking to form a joint venture in Zimbabwe to mine diamonds in Marange.
The group said they would manage the deposit through its 50 percent-owned Grandwell Holdings Limited in partnership with Marange Resources Limited, a unit of the Zimbabwe Mining Development Corporation.
The rush on Zimbabwe diamonds comes at a time when the country has made progress in complying with the requirements of the diamond watchdog body, Kimberly Process.
Mines and Mining Development Minister Obert Mpofu last week said the situation in the diamond fields was rapidly changing and Government had engaged two investors to exploit the alluvial gems.
KP members have since decided to send a monitor to Zimbabwe to supervise the country's diamond production and for the country to reform its mining laws as they continue mining under KP Certification Scheme.
The proposed amendments of the Mines and Minerals Bill seek to strengthen the relationship between Government and mining houses as well as investors.
Officially opening the Second Session of the Seventh Parliament of Zimbabwe in October, President Mugabe said the engagement of investors would help bring progress to Chiadzwa diamond fields.
The diamond industry has continued to court the attention of investors and the Government recently went into partnership with Mbada Mining and Canadile Miners (Private) Limited to extract the precious minerals in Chiadzwa.
Meanwhile, as part of the deal, Grandwell, registered in Mauritius, will provide US$100 million towards mining the deposit, adding that the shareholders of Reclamation will need to approve the project.
New Reclamation, southern Africa's biggest scrap metal company, sold US$375 million of bonds due in 2013 in January 2006.
According to the company website, the group processes ferrous and non-ferrous metal as well as glass, plastic and paper waste and employs more than 2 000 people.
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