Diamond News Archives

Zimbabwe wants mining firms to list on the local bourse as part of efforts under new president Emmerson Mnangagwa to boost investment and local ownership of its vast mineral resources, a new bill before parliament showed.

Mnangagwa, who took power in November when the military ousted Robert Mugabe after nearly four decades, has vowed to revitalise the economy and unlock investment in the mining sector after years of reticence by foreign investors.

"No mining right or title shall be granted or issued to a public company unless the majority of its shares are listed on a securities exchange in Zimbabwe," the bill says.

Companies seeking rights to mine in the platinum-rich country but already listed elsewhere must notify the mines minister and use the funds from such public offers to develop the mine in Zimbabwe, the bill said.

A failure to comply would mean a liability of a fine equivalent to 100 percent of the cash raised at the foreign listing or as much as 10 years in prison.

Industry lobby group, Chamber of Mines, said its members were not opposed to the proposal to list on the local bourse but warned that exchange may not be deep and liquid enough for companies to raise capital.

"Our members are not averse to listing on the local bourse but it has no capacity to meet the needs of the members," Chief Executive Isaac Kwesu said.

"Mining is a capital intensive business and some of our larger mines are listed on foreign exchanges because they are able to raise large amounts for working capital and for investment."

Four mining companies, including Canada's Falcon Gold and local diversified miner RioZim, are listed on the Zimbabwe Stock Exchange, which has a market capitalisation of around $8 billion. (Reporting by Alfonce Mbizwo, editing by David Evans)

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(IDEX Online) – The Diamond Empowerment Fund (DEF), through its Diamonds Do Good nomenclature, launched a profile of Okavango Diamond Company’s Youth Entrepreneurship Programme (ODC-YEP) on DiamondsDoGood.com.<?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

The program is designed to expose youth in Botswana to the diamond value chain and provide formal entrepreneurship training to assist them in exploring and developing their entrepreneurial ambitions, the DEF said.

“Entrepreneurship has been identified as part of a number of solutions to address unemployment in Botswana,” said ODC’s Managing Director Marcus Ter Haar, who is a board member of the Diamond Empowerment Fund. “It is important for us as stakeholders in the industry to do all in our power to ensure the success of the country in which we do business and the people that live there.”  

The story will be targeted to millennials through the social media based Diamonds Do Good Initiative.

Research shows 75% of consumers say they are more likely to purchase a diamond after reading positive stories about how the industry gives back, the DEF said. “Putting forward a positive narrative surrounding diamonds is essential,” says DEF president and GIA senior vice president Anna Martin. “Sharing these stories with our customers is not only good for business, it is a responsibility for the entire industry.”

More examples of how the industry gives back will be highlighted at this year’s Diamonds Do Good Gala in Las Vegas on May 31 with honorees Bruce Cleaver, CEO De Beers, and Canada’s Government of the Northwest Territories (GNWT). Cleaver is being recognized for De Beers' work in accelerating women’s professional advancement and GNWT is being recognized for responsible diamond mining practices which ensure a sustainable future for the indigenous tribes and wildlife that surround the mining operations....

(IDEX Online News) – The IDEX polished diamond price index was flat during March following small increases in January and February. <?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

The Index began the month at 123.92 and ended at 123.29.

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Outlook

Sentiment in the diamond centers was generally solid, although business levels declined ahead of the Passover and Easter holidays.

Demand in Asia was reportedly stronger. Meanwhile in Russia, new guidelines from the country's mining monopoly ALROSA called on its rough diamond clients to join the firm in moving to ensure that their customers know of the Russian origin of their goods.

In India – and globally – there is ongoing concern about the fallout from the Nirav Modi bank fraud case which is likely to make receiving credit much more difficult.

For the full IDEX Online Research article, click here^[1]...

South African engineering and construction group Murray & Roberts (JSE:MUR) unveiled Tuesday it had been awarded 3.7 billion rand (about $313 million) in mining projects located in sub-Saharan Africa, North America and Australasia.

The company, currently subject of a takeover bid from Germany’s ATON, said the awarded underground projects included diamond, gold, copper, salt and platinum mines. It also said they were due for delivery in two to three years.

Last week, M&R rejected ATON’s buyout offer, which considered “opportunistic” and one with poor value for shareholders.

ATON, a company owned by German investor Lutz Helmig, had offered to buy about 13.7 million M&R shares, increasing its stake in the company to 33.1%. It had also proposed to pen an offer to buy the remaining shares at 15 rand each.

It was the second time attempted to grab the Johannesburg-based company. Talks about a merger of the M&R’s underground mining business, known as Cementation, and a company owned by Aton in 2016, ended with no agreement.

The German company — which has a diverse portfolio of investments in the mining, engineering, aviation and health technology sectors — has a roughly 30% stake, but aims to rise it 33.1%, which is close to the level at which it must make an offer to all minority shareholders under JSE rules.

The South African firm’s underground mining division has an extensive geographic footprint, covering six continents. Its service offering spans the project value chain including specialist engineering, shaft construction, mine development, specialist-mining services, including raise boring and grouting, and contract mining.

Shares in Murray & Roberts closed up 1.45% on Tuesday to 14 rand.

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