ZMDC shows interest in struggling River Ranch diamond mine - report

Zimbabwe Mining Development Corporation (ZMDC) said it is interested in acquiring a stake in one of the country’s private diamond mining company, River Ranch, which recently applied for liquidation.
Newsday quoted ZMDC chairman Godwills Masimirembwa as saying that the state-owned miner was currently negotiating with the owners of the kimberlite mine valued at about $20 million.
“Negotiations are ongoing. We are carrying out due diligence which will enable us to make an offer,” he said.  “We have put in place a technical team to establish the extent of the resource.”
Newsday also quoted unnamed sources as saying that ZMDC would acquire 51 percent of the mine, while Khupukile Resources (which currently owns a 20 percent stake) would retain some shareholding.
The state-owned company would also seek partnerships with foreign investors, believed to be either Chinese or Indians.
The chief executive of Rani Investments (which owns 80 percent of the Beitbridge mine through Limpopo Mining Resources) Salim Bitar said last week that negotiations with the ZMDC had not yet been concluded.
He said the shareholders had seen it necessary to apply for liquidation as ZMDC had not made any offer.
“If ZMDC wished to acquire the mine, it could continue negotiations with the court appointed liquidator,” he said
Rani said last March that it wanted to dispose of the mine to focus on its core business of hospitality and tourism in Zimbabwe and the southern African region.
Zimbabwe’s deputy mines minister Gift Chimanikire denied in an interview with Rough & Polished during the same month that ZMDC was engaged in talks with the majority shareholder to acquire its stake in the troubled diamond mine.
“We have only read this in the local press and beyond this I have no knowledge of these discussions,” he said then.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished