Mugabe’s plan to nationalise diamond mining

By Tererai Karimakwenda
21 February, 2007

In an interview broadcast the eve of his birthday on Tuesday, Robert Mugabe made it clear that diamond mining in Zimbabwe will be nationalised. He also accused unnamed senior members of his government of being involved in controversial diamond mining activities saying that he did not approve. The ZANU-PF leader who turned 83 Wednesday said ‘only government will mine diamonds’ under a ‘special category,’ but gave no details of how any of this would be done or when.
But our sources in the mining industry say that government is already involved heavily in all forms of mining. One refiner alleged that Robert Mugabe himself, Reserve Bank Governor Gideon Gono and the Minister for Rural Housing Emmerson Mnangagwa, were the biggest black market dealers of gold and diamonds. He said the authorities have been interfering with private mining companies for years. There are also unconfirmed reports that 121 kgs worth of gold bars, stamped by RBZ , were intercepted by authorities in Mozambique last month.
The River Ranch diamond company was given as an example of government interference. Our sources said the company used to be run by Anglo American and the owners tried desperately to work out a deal when government started interfering. But it became almost impossible to operate under these conditions and the government now controls operations there. It is believed production has already dropped and there are numerous problems plaguing the company.
In the Tuesday interview Mugabe tackled the succession issue without naming anyone specific. He said those players attempting to remove him from office are the same characters implicated in corrupt diamond dealings. Retired army general Solomon Mujuru is known to have an interest in diamond mining . He owns shares in River Ranch which the government forced into a takeover. The company has said they will challenge the takeover.
Our sources in the mining industry expressed deep concern that the economy would deteriorate even further if Mugabe moves to nationalise diamond mining. They said many companies now supplying spares and services to the mining sector used to do the same in agriculture. But as the government illegally took over commercial farms they were forced to seek opportunities in mining. With Mugabe moving to nationalise diamonds it is feared many associated businesses will shut down or leave and many more will lose their jobs.