ZCDC yet to pay DTZ-OZGEO creditors

23 Feb, 2018 - 17:02 0 Views
ZCDC yet to pay DTZ-OZGEO creditors

eBusiness Weekly

Tawanda Musarurwa
HARARE – The Zimbabwe Consolidated Diamond Company (ZCDC) is yet to fulfill its pledge to pay former diamond firm DTZ-OZGEO.

In February 2015, the Government moved to consolidate the local diamond mining sector and stopped the operations of six companies that had been granted joint venture mining rights with the Zimbabwe Mining Development Corporation (ZMDC).

Special grants for the Chiadzwa diamond fields had been issued to Anjin, Diamond Mining Company, Jinan, Mbada Diamonds, DTZ OZGEO, Rera, Gye-Nyame, Kusena and Marange Resources. The grants were not renewed once they expired.

DTZ-OZGEO managing director Victor Kusyla (via a translator) told the Parliamentary Portfolio Committee on Mines and Energy this morning that the terms of their contract termination were yet to be fulfilled. The commitment was part of the agreement made between Government and diamond mining firms that were removed from the Chiadzwa diamond fields.

“The contract we are talking about the contract which we eventually had to sign with the Zimbabwe Consolidated Diamond Company because we had no option. In terms of the contract 60 percent of the (DTZ-OZGEO) project had to be surrendered to ZCDC, but there are a lot of issues which have not been followed up.

“And now we are looking at renegotiating with ZCDC, whether they really want to fulfill the requirements of the contract.

“According to the contract ZCDC was supposed to settle our creditors, but nothing has been done yet. And now we are spending money being dragged to court of some of our creditors,” said Mr Kusyla.

Last year, the Government said it had paid over $5 million to buy out DTZ-OZGEO for its diamond claims in Chimanimani. Prior to stopping operations, the company said, it was producing between 20 and 30 kilograms of carats per month.

DTZ told Parly today that it had since constructed a diamond sorting plant in Penhalonga, which although approved by the Kimberly Process, is currently lying idle.

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