Zimbabwe Government to Take 50% Stakes in Diamond Mines

2 September 2009 (Last Updated September 2nd, 2009 18:30)

Zimbabwe’s mining ministry has said the government will take a 50% stake in all diamond mining projects in the country. Legislation currently states that foreign-owned mines must give a majority stake to the government and locals but many thought the establishment of a unity governmen

Zimbabwe’s mining ministry has said the government will take a 50% stake in all diamond mining projects in the country.

Legislation currently states that foreign-owned mines must give a majority stake to the government and locals but many thought the establishment of a unity government by the Movement for Democratic Change and ZANU-PF would mean the law would be scrapped, Reuters reports.

Mines Minister Obert Mpofu said the government would not change its position.

"With diamonds, we want 50-50 percent shareholding in joint ventures with investors, that's not negotiable," Mpofu was quoted in The Herald newspaper.