Industry News by Nemesis

Asian Diamond Firm Sues Zimbabwe Govt for Over $14mln

June 12, 2019

Pure Diam DMCC has instructed the High Court Sheriff to seize diamonds owned by the state-owned Zimbabwe Consolidated Diamond Company (ZCDC) to recover more than $14 million, according to a local weekly. 


The Asian diamond company’s mining licence was terminated by Harare in 2016, paving way for the formation of the Zimbabwe Consolidated Diamond Company (ZCDC). 


Prior to the cancellation of its licence, Pure Diam was operating under Diamond Mining Corporation (DMC) in partnership with ZMDC. 


It was said to have extended a loan of $8 million to DMC in 2010, while its shareholding value stood at $10,9 million in the joint venture. 


Pure Diam took Harare to the court when its revoked its licence along with those of other players operating in Marange at the time. 


The High Court then ruled in favour of Pure Diam on October 11, 2018 instructing the ZCDC to pay the diamond miner "US$14 055 312,00 inclusive of interest accrued till 30 April 2018." 


ZCDC was also liable to pay an additional $561 371 to Pure Diam "being further interest at the rate of 5% per annum from 1 May 2018 to date of payment in full". 


However, ZCDC failed to comply with the High Court ruling, which saw Pure Diam approaching the Sheriff. 


"We therefore instruct that you … attend to the MMCZ building … and attach the judgment's debtors assets being diamonds which are kept in the vault room," lawyers representing Pure Diam, Gill Godlonton and Gerrans said. 


The sheriff was yet to attach the diamonds. 


Pure Diam had previously sought to attach two properties owned by the ZCDC. 

 

Source: Rough&Polished

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