FRESH evidence has emerged on how South African companies use their connections in government to get concessions to mine diamonds in the controversial Chiadzwa area of Marange.

The revelations came amid indications that there were over 140 applications for mining concessions in Marange lodged with the government so far.

Government last year allocated 2200 hectare concessions in Chiadzwa to two companies known as Mbada and Canadile to exploit mining claims seized from the British registered African Consolidated Resources (ACR) in 2006.

The move raised eyebrows following claims that government imposed the investors on the Zimbabwe Mining Development Corporation (ZMDC), which has 50% shareholding in both companies.

One of the companies, Manhattan Equity based in Johannesburg claims that it facilitated the Mbada and Canadile deals through the help of its contacts in the Zimbabwe government.

It says three of the Canadile “deal makers and mining engineers” are now in the process of selling their shares and are scouting for investors to acquire their own concession.

The new venture would be structured in the same way Mbada and Canadile were set up where ZMDC through its subsidiary Marange Resources automatically owns 50%.

An investor who might be interested in the offer would be asked to pour in US$12 million for a 25% stake in the venture.

Manhattan Equity would get 4% shareholding for “contacts”, and the other shareholding would be divided between an indigenous investor, capital raiser and the technical experts, information gathered by The Standard shows.

“Our team has strong experience in opencast alluvial diamond mining and very knowledgeable about the Marange area,” wrote Manhattan’s Andrew Tyndale-Biscoe, in a proposal to one of the prospective investors.

“As I said, we are very close to the top decision makers, so that if we can raise the required US$12 million, then we stand a very good chance of obtaining a very good concession, which we know of.
“Unfortunately time is not on our side as there are 140 applications in for concessions on Marange (10 of which are probably serious) and ZMDC are pressurised to award some concessions in due course.”
Manhattan promises that the investors would get their capital and interest back within two months of start up.

The monthly revenue from the concession would be US$33 million raised from “345 000 tons mined at an estimated grade of 3.2 carats per ton averaging US$30 per carat.”

The project would make profits of US$25 million a month according to the Manhattan projections.
Mines and Mining Development Minister Obert Mpofu who has been hauled before the Parliamentary Portfolio Committee on Mines and Energy to explain how Canadile and Mbada were selected refused to comment on the matter yesterday.

He said he does not speak to The Standard. Manhattan officials also did not respond to emails sent to them on Friday while efforts to get comments from Canadile and Mbada were fruitless.
Government says the Marange diamonds provide the only hope for an economic revival in the face of the country’s isolation and a ballooning foreign debt.

The country is currently barred from exporting diamonds from the area after government deployed soldiers and armed police to rid the area of illegal panners and dealers who had descended on the area.

Human rights activists have accused the security forces of committing atrocities and involvement in smuggling activities leading to concerns that Zimbabwe is not meeting minimum requirement of the Kimberley Process Certification Scheme – the global watchdog in world diamond trade.

By The Standard