Statement re: Marange Press Reports
African Consolidated Resources plc ('ACR' or 'the Company')
Statement re: Marange Press Reports
African Consolidated Resources plc, the AIM listed resource development company
focussed in Zimbabwe notes on-going press reports surrounding the supposed
approval of the sale of diamonds from the Marange diamond fields in Zimbabwe
(the 'Marange Claims Area'), where ACR's title had been upheld by the High Court
in a judgement issued on 25 September 2009 (the '25 September Judgement').
As previously announced, the Zimbabwe Supreme Court issued a Judgment on 16
February 2010 ('the 16 February Judgement') which ordered that all diamonds
acquired from the Marange Claims Area be surrendered to the Reserve Bank of
Zimbabwe ('RBZ'), and that all mining activities on the Marange Claims Area
cease until determination of the appeal against the 25 September Judgement in
the Supreme Court ('the Substantive Appeal').
In spite of the16 February Judgment, mining has continued without halt. Only
the diamonds mentioned in the 25 September Judgement were lodged with RBZ,
whereas ACR understands that diamonds which are continually stockpiled by the
companies mining upon the Marange Claims Area ('Mbada and Canadile') are
retained by those companies. ACR's legal advice is that this is contrary to the
stated and implied intention of the Chief Justice in the 16 February Judgment.
Considering the needs of the nation's economy and not wishing to stand in the
way of much-needed income to the national treasury, in April 2010 ACR made a
formal representations to Government and other interested parties, including
Zimbabwe Mining Development Corporation ('ZMDC') on a without prejudice basis,
stating that it would not oppose the sale of diamonds provided that certain
conditions were met, including:
(1)Â Â Â Â Â Â Â Â Â Â all diamonds in dispute be sold to reputable interested parties
once certification had been obtained pursuant to the Kimberley Process;
(2)Â Â Â Â Â Â Â Â Â Â the entire gross proceeds from the sale be paid over to the
Government of Zimbabwe;
(3)Â Â Â Â Â Â Â Â Â Â the Government of Zimbabwe issue a tax or royalty credit for a sum
equivalent to 50% of the sale proceeds; and
(4)Â Â Â Â Â Â Â Â Â Â the party finally awarded ownership of the diamonds by the Supreme
Court be deemed to be the holder of the tax or royalty credit.
This offer has been ignored by Government and by Mbada and Canadile. Based on
this attitude and on the fact that the Supreme Court is being ignored, and
further that there appears to be an intention to sell the stockpiled diamonds
within the near future, ACR was left with no alternative but to seek further
relief by way of an urgent application to the High Court (the 'Application').
ACR's urgent Application in this regard specifically claimed:
a) an interim interdict to stop the sale of any diamonds held by Mbada and
Canadile, and;
b) an order that all diamonds mined from the Marange Claims Area and held by the
said companies fall within the ambit of the 16 February Judgement and that they
must therefore be handed over to RBZ for safekeeping pending the Substantive
Appeal.
The High Court dismissed the Application on the basis that the matter was not
urgent, and on that basis alone, as it considered ACR would have other remedies
available to it if the diamonds were sold. He specifically stated that he was
making no finding on the merits.
The effect of this is that the High Court has declined to grant the Interdict
and ACR is now obliged to re-lodge the Application as a normal (i.e. non-urgent)
Application in the High Court, which ACR has now done.
It is essential to note that the High Court has not authorised the sale of the
diamonds as has been widely reported. He was not at liberty to do so and was
not asked by any of the parties to approve a sale. ACR's legal advice is that
any sale of the disputed diamonds would be in conflict with the clear intention
and the direct order of the Chief Justice in the 16 February Judgement.
ACR continues to lobby all offices of Government for a rational, just and fair
settlement of the matter which could satisfy all stakeholders and bring about a
final solution quickly.
It is ACR's contention that the intransigence of Mbada and Canadile, their lack
of respect for the Court and their lack of will to compromise for the good of
the nation is damaging Zimbabwe's image at home and abroad and delaying the
point when the diamonds discovered by it at Marange may benefit Zimbabwe
transparently and fairly.
Enquiries:
African Consolidated Resources plc +44 1622 816918 / +44 7920 189012
Roy Tucker
African Consolidated Resources plc +44 7920 189010
Andrew Cranswick
Ambrian Partners Limited +44 20 7634 4700
Richard Greenfield
St Brides Media & Finance Ltd +44 20 7236 1177
Hugo de Salis
Susie Callear
[HUG#1412371]
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