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Zimbabwe court orders return of firm to diamond fields, defying Mugabe

Published 04/03/2016, 16:28
Updated 04/03/2016, 16:30
© Reuters. Zimbabwe President Mugabe addresses memorial service for retired general Mujuru at Ruzambo Farm in Beatrice

HARARE (Reuters) - Zimbabwe's High Court told the government on Friday to let the largest diamond-mining firm in its Marange fields return to its mines and take control of its assets there, defying President Robert Mugabe who said all operations had been nationalised.

Mugabe on Thursday said his government would take possession of all diamond operations because existing miners had robbed the country of its wealth.

It is the second time this week that High Court Judge Joseph Mafusire has ordered the government to let security personnel from Mbada Diamonds to have access to all the company's assets in Marange.

Mafusire made the same ruling on Monday after Mbada challenged the decision by the mines minister to order companies in the diamond fields in the east to stop mining and leave because their licences had expired.

The court is to decide on whether companies can resume mining operations at a hearing set for March 8.

The judge said the government's failure to comply with his first ruling was "wilful and deliberate" and he warned that he would rule in Mbada's favour on March. 8 if the government did not comply with his latest order.

Mines Minister Walter Chidhakwa, who is opposing Mbada's application to resume mining operations, was not immediately available for comment.

Mbada and Chinese-run Anjin Investments have challenged the government's diamond mining ban and have asked the court to declare the decision unlawful.

The government's ban has sought to highlight how unpredictable Zimbabwe is to potential investors as it struggles to emerge from a catastrophic recession that cut economic output by nearly half during the decade to 2008.

"The biggest problem with Zimbabwe is its policy uncertainty. ZANU-PF often gets desperate for cash and grabs any resource they can," said Gary van Staden, Johannesburg-based political analyst for NKC African Economics.

© Reuters. Zimbabwe President Mugabe addresses memorial service for retired general Mujuru at Ruzambo Farm in Beatrice

The feud with diamond mines come at a time an International Monetary Fund team is in Zimbabwe for talks aimed at reviewing Harare's economic performance, which could lead to a financial aid package after years of isolation.

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