Zimbabwe's high court has cancelled British-owned African Consolidated Resources' licence in the eastern Marange diamond fields.
The court has rescinded a judgment that confirmed the validity of the company's mining claims within the Marange diamond field seized by the government.
High Court Judge Charles Hungwe said the company duped authorities to acquire the mining rights since its subsidiaries were not yet registered locally when they obtained the licence.
Hungwe previously ruled mining claims at Marange belonged to African Consolidated and mining operations being carried out by the state-owned Zimbabwe Mining and Development Corp should be suspended.
African Consolidated said it will appeal to the Supreme Court against the rescission, which has the effect of suspending the ruling so that existing orders still stand.
The Government of Zimbabwe confiscated the Marange mining licence owned by African Consolidated Resources in 2006.