The government is set to pay DTZ-OZGEO US$5.4 million to take over the diamond mining concession in Marange.
This follows an agreement with the Russian firm paving way for the consolidation of diamond mining companies.
The Minister of Mines and Mining Development Cde Walter Chidhakwa said other mining companies have dropped legal proceedings against consolidation which gives the Zimbabwe Consolidated Diamond Company (ZCDC) a chance to recapitalisation its operations.
In an interview on the sidelines of the Kimberley Process Certification Scheme (KPCS) intercessional meeting in Perth Australia, Minister Chidhakwa said an amount of US$5.4 million will be paid to take over mining concessions held by DTZ-OZGEO.
DTZ-OZGEO is a Russian diamond firm which operated in the Marange under a joint venture agreement with the Zimbabwe Mining Development Corporation.
Recently the Reserve Bank of Zimbabwe has availed US$8 million to the ZCDC as part of the recapitalisation programme which is expected to push the firm’s production figures beyond 200 000 carats monthly.
Government embarked on the consolidation of diamond mining companies after realising that less revenue was being realised and the new company is expected to improve transparency and accountability of the country’s precious stones.