The Centre for Natural Resources Governance (CNRG) Director, Farai Maguwu has revealed intricate details of an emerging conflict between Marange community and government concern the Zimbabwe Consolidated Diamond Company over a joint venture mining deal with a UK based firm VAST Resources.
According Maguwu, a community meeting held in Marange and presided over by Chief Marange revealed how the community had been cheated by some corrupt persons who went behind the traditional leaders, formed a company and negotiated the deal with ZCDC and Vast Resources.
Maguwu said initially, the community interests were supposed to be represented by a company called Red Mercury Private Limited, formed under the Zimunya Marange Community Share Ownership Trust (ZCSOT) to negotiate a diamond concession on behalf of the Marange community.
All this came to naught after the alleged persons formed their own Katanga Resources and held meetings with ZCDC before signing agreements on behalf of the community.
“The conflict in Marange poses a lot of questions on how entities formed on behalf of the community ought to be negotiated, formed, managed and registered, the question of accountability is critical.
“It sounds the majority of the people in Marange have no clue about either Red Mercury or Chiadzwa Mineral Resources- how they were formed and how (communities) are supposed to benefit from these.
“Community members complained that the matter was only brought to them due to the fall out among those involved and had it not been for the fallout they had been left out.
“The corrupt hand of Zimbabwean politicians is writ large in the chaos. It seems the chaos was deliberately created to confuse and divide the community whilst the looting spree continues,” said Maguwu.
ZCDC acting chief executive officer Roberto DePretto confirmed completing negotiations with VAST Resources.
“Chiadzwa community signed an agreement with VAST Resources, they formed an entity called Katanga Resources which then came to ZCDC and we signed an agreement with them so it’s a back to back arrangement.
“There have always been trust funds or trust deeds but now they (community) are shareholders owning a piece of the company, we are so excited about this development, what we are now hoping for now is the acceleration of the final deal,” said DePretto.
VAST resources also recently released an information update on its website stating that the company had finalised the joint venture deal and were now awaiting official communication from the Ministry of Mines.
“The AIM-listed mining company, is pleased to update the market on progress on the anticipated Joint Venture Agreement between the Company’s majority owned Katanga Mining Pvt Ltd (a joint venture company between the Company and the Chiadzwa Community Development Trust (CCDT)) and Zimbabwe Consolidated Diamond Company (Pvt) Ltd (wholly owned by the Government of Zimbabwe) concerning the Chiadzwa Community Diamond Project.
