- Anjin to sue ZCDC
- Company wants diamonds claim back
- Anjin reportedly started mining on claim 2 weeks ago
ZIMBABWE Consolidated Diamond Company (ZCDC) is facing a fresh legal battle from Anjin Investments, a Chinese mining firm which was booted from diamond concessions in Chiadzwa but later won the case in the High Court and resumed mining in March 2019.
Anjin Investments commenced its mining operations two weeks ago on a portion reportedly now owned by ZCDC.
Anjin is one of the four companies permitted to undertake diamonds exploration and mining in Marange through the Zimbabwe National Diamond Policy (ZNDP) approved by Cabinet on the December 4, 2018.
Anjin, alongside Mbada Diamonds, Marange Resources, Diamond Mining Company, Kusena, Gye Nyame and DTZ Ozgeo, were booted out of Chiadzwa four years ago by government on allegations of prejudicing the State of millions of dollars in diamond revenue through understating earnings and not declaring dividends.
Anjin Investments, whose shareholders are Anhui Foreign Economic Construction Company (Pvt) Ltd of China (Afecc) and Matt Bronze, an investment vehicle controlled by the Zimbabwe National Army, had injected an estimated US$225 million capital outlay into the diamond mining venture before government’s order to halt operations.
However, the miner has maintained presence in Chiadzwa, contesting the controversial termination of its licence which has since been restored by the High Court.
Sources close to the goings-on said ZCDC was yet to uphold the court order and surrender the concessions which were taken from the Chinese firm.
“ZCDC is still to surrender all concessions they took from Anjin as per the High Court order. Anjin will be forced to approach the courts again,” a source told Zim Morning Post.
The debt-ridden, State-controlled enterprise, ZCDC, has been haunted by scandals and underperformance ever since its formation, leading to perennial loses of more than IS$50 million in the period between April 2015 and May 2016 alone.
This was revealed in an independent audit report conducted by AMG Global seen by this publication.
The company has also incurred losses due to court challenges which they were facing, the audit report revealed.