Anglo-American exposed over Chiadzwa diamonds

PRESIDENT Mugabe yesterday revealed to investors attending the Mining Indaba that Anglo-American knew of the existence of diamonds in Chiadzwa and never revealed that to Government. He said for years the company was robbing the nation of vital income from the diamond fields.

He said that Anglo-American Corporation prospected for diamonds in Marange for years and secretly benefitted from the extraction of the precious mineral.

"The Anglo-American Corporation did a lot of prospecting but never told us there were diamonds there," said President Mugabe. 

"From what we hear Anglo was doing some tests year-in year-out and getting diamonds out of the country" without the knowledge of the government, he added.

"The Anglo-American Corporation had lots of claims that are still the largest player in the mining sector. We say to them give them up. Let other players come in," he said.

The president's revelation rubbishes reports that diamonds were only discovered in Zimbabwe in 2006 and that they were used to benefit Zanu PF party officials.

A Human Rights Watch report released in June this year and which coincided with the Kimberley Process team's visit to Zimbabwe claimed that government violently took over diamond fields in Zimbabwe last year and has used the illicit revenues to buy the loyalty of restive soldiers and enrich party leaders.

The HRW report failed to identify Anglo-American's years of involvement in the diamond field and how it denied Zimbabwe access to a vital resource.

The report further alleged that the Zanu PF party smuggled diamonds out of the country or illegally sold them through the Reserve Bank; but was silent on Anglo-American's activities.

President Mugabe explained the role of the military at Chiadzwa diamond fields.

"We had to clear the area and get it under the occupation of the State. We will invite companies to do the mining. The army was not there to mine but to provide security in the area and to take care of the area until Government got an experienced company to do the mining.

"(The) Ministry of Mines has approved a number of companies to go to that area," President Mugabe said.

Ministers Obert Mpofu (Mines and Mining Development); Tendai Biti (Finance); Elton Mangoma (Economic and Investment Promotion); Saviour Kasukuwere (Youth Development, Indigenisation and Empowerment); Olivia Muchena (Women’s Affairs, Gender and Community Development); and Reserve Bank of Zimbabwe Governor Dr Gideon Gono attended the meeting.

Asked what Government was doing to ensure the removal of economic sanctions, the President said: "We are pleading for sanctions to go. Ours is a mere prayer. We cannot do more than that."

Dr Gono said sanctions were affecting everybody in the country and suggested that business could mobilise support and call for their removal.

Minister Mpofu said sanctions would soon be overtaken by other events.

"We have big delegations from Europe and Canada who want to engage us," he said.

Minister Biti urged the visitors to seize investment opportunities and desist from fence-sitting, while Minister Mangoma warned that companies sitting on claims would soon lose them.

"The use it or lose it policy is coming. We cannot debate that. You cannot sit on claims."

Some big companies have been sitting on claims for periods ranging between 40 and 80 years, blocking potential investors from coming in and developing the sector.