When thieves fall out
On Monday the Minister of Mines called in the CEO’s of all six companies mining diamonds at Marange. While he was speaking to them, the Police moved in on site and ordered the staff of all the companies to down tools and leave. Hundreds of millions of dollars of equipment was left abandoned, offices and warehouses unattended and the response by the local community was immediate – they swarmed all over the site, started digging for diamonds themselves and looted everything in sight. On Thursday this week the President announced that the State was “nationalizing” all diamond mining activity.
It was the culmination of decades of discovery and dispute over this vast deposit of alluvial and agglomerate diamond bearing resources containing perhaps 10 billion carats of raw diamonds – possibly the largest discovery in the past 100 years or more.
It was first discovered by De Beers – the largest diamond mining and marketing company in the world who sat on the discovery for nearly 2 decades before they allowed their claims to lapse in 2006. The claims were immediately taken over by a small London based company – African Consolidated Resources (ACR) who then commenced trenching and in 6 weeks discovered what De Beers had been sitting on for many years – large numbers of diamonds in alluvial sands surrounding a ridge of hard agglomerate which contained the bulk of the diamonds and was gradually releasing them into surrounding sands.
Under the rules of the London stock market they published the discovery and this notice came to the attention of the Ministry of Mines in Harare who immediately took steps to cancel the rights of ACR and allow small scale miners (eventually an estimated 40 000) to occupy the site and start shallow mining. In 2008 the State woke up to the richness of the resource and moved in with the Army and helicopter gunships, killed over 200 miners and drove the rest off the site.
Six companies were then granted licenses to start mining. All were associated in one way or another with State security agencies and the State controlled Zimbabwe Mining Development Corporation (ZMDC) who nominally held half of the equity in each operation but with little or no real control and influence. The largest operation was Anjin – a company granted a license personally by the President and controlled by the Red Army of China. The second largest operation was Mbada controlled by close associates of Mr. Mugabe and other criminal elements in South Africa. A third was effectively controlled by the Minister of Mines in the form of Marange Resources.