The Zimbabwe government has nationalized the country's diamond mining industry by evicting all existing diamond mining companies from their concessions. The government informed the nine diamond mining firms operating in the country to immediately cease mining activities and vacate the concessions they were operating on. As a result, the Zimbabwe Consolidated Diamond Company will now become wholly government-owned, rather than the previous proposal of a joint venture between the government and private mining companies. The government took this decision because the mining companies did not agree to its proposal to consolidate the industry and had failed to renew their special grants.

1. ....as ZCDC become wholly
Govt-owned
By Tawanda Musarurwa
HARARE – Government has told
all diamond mining companies to
immediately cease mining activ-
ities and vacate the mining con-
cessions they were operating on.
The development means there
has been an instant re-structur-
ing of the Zimbabwe Consoli-
dated Diamond Company (ZCDC)
into a wholly State-owned entity
from the previous proposal of a
joint venture between Govern-
ment and the nine diamond min-
ing firms.
Following a briefing to the dia-
mond firms by the secretary of
Mines earlier this morning, Mines
and Mining Development Minister
Walter Chidhakwa said that the
decision had been made on the
basis of the firms’ non-commit-
tal to the consolidation plan and
the fact that they had all failed to
renew their special grants.
“Since they no longer hold any
titles these companies were noti-
fied this morning to cease all
mining activities with immediate
effect and to vacate the mining
areas covered by special grants
for diamonds.
“They have been given 90 days
within which to remove their
equipment and other valuables.
During this period access into the
premises will be by request which
will be considered by the Minis-
try of Mines and Mining Develop-
ment,” said Minister Chidhakwa.
To this effect Government has
instructed the firms to co-operate
in hand-over-take-over of all dia-
mond products at the mines with
Government personnel that have
been deployed at the mines.
“All the diamond products will
and must be recorded. Any dia-
mond products that are not dis-
closed or found later will become
Government property,” he said.
Since 2008 special grants were
issued to joint venture companies
with the Zimbabwe Mining Devel-
opment Company (ZMDC) namely
Anjin, DMC, Jinan, Mbada, DTZ-
OZGEO, RERA, Gye-Nyame, Kus-
ena and Marange Resources.
Added the Minister: “Consulta-
News Update as @ 1530 hours, Monday 22 February 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Govt evicts all diamond mining firms

2. tion with the existent diamond
companies which took over seven
months to allow for extraordinary
shareholder general meeting
achieved no consensus between
Government and the companies
on the consolidation issue.
“There was evidence of the desire
by the companies to extend the
process of negotiation for unde-
terminable periods at a time
when the industry is in decline
and definitely in trouble. This was
not and remains an unpalatable
choice for the Government.”
Indications are that of the nine
diamond firms only Marange
Resources accepted the consoli-
dation proposals, while DMC and
Jinan turned them down.
The other firms were “dragging
their feet” and some investors
in the joint venture companies,
namely Grandwell and OFECC
are said to have made unilateral
submissions to the Government
opposing the consolidation pro-
posals.
According to Minister Chidhakwa
the new wholly Government
entity will take over all diamond
operations in the country includ-
ing the Zvishavane claims being
exploited by Murowa Diamonds
and the Beitbridge diamond kim-
berlites currently under River
Ranch Diamonds.
“All diamond mines, either cur-
rent or future ones will all be
under the ambit of ZCDC (Pvt)
Ltd. The current scope of consol-
idation includes, but is not lim-
ited to, the following: all conces-
sions which fall under the current
Chidzwa diamonds fields (both
operating and mothballed); all
T-concessions which are still to
be explored further; the Chiman-
imani diamonds fields currently
being mined by DTZ-OZGEO;
Zvishavane diamond kimber-
lites currently under Murowa
Diamonds; Beitbridge diamond
kimberlites currently under River
Ranch Diamonds and others
which are yet to be discovered or
operationalised,” he said.
Eviction Processes
“What we now expect to happen
is that the shareholders must sit
and put their shareholders agree-
ment in front and say what does
the process of dissolution entails.
They may not want to close down
the company but they may want
to say, lets share the company
in the proportions agreed in the
shareholding agreement...let’s
share the assets and the liabili-
ties as well.
“Because for your own informa-
tion there are companies which
have statutory obligations that
had not been paid for quite some
time. The companies must then
sit as shareholders and agree on
how to apportion both the assets
and the liabilities of the compa-
nies. What we have merely done
is to take away the concessions.”
Declining Payments to
Government & Investment
Pledges Defaults
Official figures show that ben-
efits from the diamond sector
have been declining gradually
since 2011. In 2011, Government
received payments from the dia-
mond firms amounting to $168,5
million, which declined to $142,4
million in 2012 and $93,2 million
in 2013.
In 2014 payments to Government
amounted to $84,3 million, which
further declined to $23,4 million
last year.
The Minister charged the compa-
nies for making investments that
were not adequate to go beyond
mining the alluvial resources at
Chiadzwa.
“Anjin pledged as per the joint
venture agreement to invest
$132,2 million, at the moment
we don’t know how much has
been invested because the com-
pany has never given us audited
financial accounts and we have
asked for them and we have not
received any audited accounts
from them.
“DMC pledged to invest $50 mil-
lion and $41 million was actu-
ally invested. Jinan $200 million
was pledged and $137 million
was invested. Mbada Diamonds
a $100 million was pledged and
$48 million was invested,” said
Minister Chidhakwa.●
2 news

3. BH243

4. By Funny Hudzerema
HARARE - Government is
looking to engage potential
partners for Air Zimbabwe
during the African Airline
Association (AFRAA) annual
general assembly (AGA)
which is going to be hosted
by Zimbabwe from the 20-22
of November this year in Vic-
toria Falls.
Transport and Infrastruc-
tural Development Minister
Dr Jorum Gumbo said hosting
the AFRAA general assembly
will be the best opportunity
to look for partners to boost
our Air Zimbabwe.
“We are busy talking to sev-
eral airlines who want to
partner with us to revitalize
Air Zimbabwe so that we can
come up with one because
the shopping list of partners
is long since many companies
are approaching us from the
Middle East, China and from
Europe.
“We are expecting that in the
next three to four years Air
Zimbabwe will be back as a
leading airline in the conti-
nent,” he said.
He added that the ministry
is looking at both small big-
ger aeroplanes to comple-
ment the airline’s fleet of
aeroplanes and ensure that
the airline resuscitates dome
of its old routes such as the
London route and those to the
far East.
He said this during a
press conference meant to
announce that Zimbabwe
will host the AFRAA general
assembly conference and
launching the logo for the
general assembly.
“I am looking at possibly
engaging with partners before
the end of the year and it’s
a process, when you bring
somebody to partner in such
an industry which a number
of countries are struggling to
boost.
“We are we are aiming at
bringing in new airlines and
experts to revitalize Air Zim-
babwe,” he said.
Dr Gumbo also said hosting
the AFRAA general assembly
conference will be an oppor-
tunity for Zimbabwe and Afri-
can countries boost its airline
industry.
“AFRAA’s vision reaffirms our
position to ensure that the
turn-around process at our
National Airline, Air Zimba-
bwe remains on a firm ped-
estal.
“I am therefore urging all
stakeholders to stand firm
behind Air Zimbabwe and join
hands with the Ministry of
transport in turning around
the fortunes of our airlines so
that it can harness the many
benefits brought by avia-
tion in word economies,” he
added.
He also said that hosting the
AFRRA Annual General Assem-
bly has many benefits for the
passengers, our National Air-
line, the hospitality industry
and the nation at large.
“Our national airline has to
prove yet again that they can
lead Africa into an aviation
giant,” he said.
The AFRAA annual general
assembly conference will be
the 48th edition targeted to
bring 400 delegates from 50
countries in Zimbabwe and
experts, CEOs of different
airlines together.●
4 news
Govt to engage partners for Air Zimbabwe

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6. BH246

7. BH24 Reporter
HARARE - Dubai-based Emir-
ates airliner is offering Zimba-
bwean travellers these limited
time special fares to some of
the world’s top destinations on
both Business and Economy
class options.
According to Emirates, all-in-
clusive Economy Class fares
from Harare start at $920
to London, $570 to Dubai,
$830 to Guangzhou and $720
to Mumbai, while Business
Class fares start at $1 800 to
Mumbai, $2 690 to Dubai, $2
585 to London and $3 010 to
Guangzhou.
The airliner said for local trav-
ellers to benefit from the lim-
ited reduction in fares, book-
ings should be made between
February 22 and March 4 for
travel before June 30, 2016.
Emirates Zimbabwe country
manager Mr Paulos Legesse
said “Emirates focuses on
offering its customers value
for money, and with these lim-
ited time special fares to so
many destinations, it offers
even greater value.”
Last month the airliner intro-
duced the Boeing 777-300ER
aircraft on its Harare-Dubai
route.
He added: “With the larger
Boeing 777-300 aircraft now
operational on the Zimba-
bwe route, passengers can
experience more of Emirates
industry-leading comforts and
award-winning services.
“The 777 aircraft has increased
the capacity on the route with
97 Economy Class seats per
flight, eight private suites in
First Class, 42 lie-flat seats
in Business Class and 310
spacious seats in Economy
Class.”●
7 news
Emirates reduces fares to top destinations

8. BH248

9. BH249

10. BH2410

11. HARARE - The equities mar-
ket opened the week on a
high after the mainstream
industrial index rebounded
0.22 to settle at 99.14 on the
back of a gain in Delta Bev-
erages.
The beverages manufactur-
ing giant was the only coun-
ter that gained ground today
adding $0,0050 to close at
$0,5250.
Spirits-maker AFDIS, OK
Zim, Willdale and Zimre Hold-
ings traded unchanged at
$0,4500, $0,0350, $ 0,0015
and $0,0127 in that order.
On the downside, telecoms
giant Econet lost a marginal
$0,0003 to trade at $0,2202
while Old Mutual inched down
$0,0002 to close at $1,8000.
The mining index was steady
at 18.74 points as Bindura,
Falgold, Hwange and RioZim
maintained previous price
levels at $0,0090, $0,0050,
$0,0300 and $0,1040 respec-
tively. - BH24 Reporter ●
ZSE11
Industrials open week bullish

12. BH2412

13. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Econet -0.13 22.02
Old Mutual -0.01 180.00
Index Previous Today Move Change
Industrial 98.92 99.14 +0.22 points +0.22%
Mining 18.74 18.74 +0.00 points +0.00%
13 zse tables
ZSE
Indices
Stock Exchange
Previous
02 03
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14. BH2414

15. BH2415

16. 16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
19 February 2016
Energy
(Megawatts)
Hwange 341 MW
Kariba 285 MW
Harare 17 MW
Munyati 28 MW
Bulawayo 0 MW
Imports 0 - 450 MW
Total 1355 MW
—23 February 2015 - 38th Annual General Meeting of the members of Powerspeed Electrical Limited; Place: Powerspeed Board-
room, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road North, Graniteside, Harare; Time: 1100 hours
25 February 2016 - Extraordinary General Meeting (“EGM”) of the Shareholders of Radar Holdings Limited; Place: Tanganyika
House, 6th Floor Boardroom, Harare; Time: 0900 hours...
25 February 2016 - The 49th Annual General Meeting of Mashonaland Holdings Limited; Place: The Boardroom, 19th Floor, ZB Life
Towers, 77 Jason Moyo Avenue, Harare; Time: 1200 hours...
26 February 2016 - The Sixty-ninth Annual General Meeting of Ariston Holdings Limited; Place: Ariston Holdings Limited Main
Boardroom, 306 Hillside Road, Msasa Woodlands, Harare: Time: 14.30 hours:
THE BH24 DIARY

17. BH2417

18. JOHANNESBURG - South
Africa's rand was little
changed against the dol-
lar in early trade on Monday
as hopes for further inter-
est rates hikes buoyed sen-
timent, although investors
were cautious ahead of the
budget later in the week.
At 0645 GMT, the rand traded
at 15.4000 versus the dollar,
not far off its Friday's close
of 15.3850.
The currency last week
traded at its strongest levels
this year, firming to 15.2460/
dollar on Thursday, after ris-
ing inflation bolstered expec-
tations that the South Afri-
can Reserve Bank would hike
interest rates further.
Focus this week is on Finance
minister Pravin Gordhan's
three-year budget presenta-
tion to parliament on Feb. 24.
Analysts have cautioned that
the rand could resume the
downward spiral triggered
by the clumsy changing of
finance ministers in Decem-
ber if the budget failed to
convince investors that pru-
dent fiscal policy remains
intact.
"All eyes will be on Gordhan
this week," NKC African Eco-
nomics said in a note.
"If he draws large enough
line in sand to appease rat-
ing agencies and ensure for-
eign investors that govern-
ment has been shaken form
its jaded state we might see
rand make run at 15/dollar,
though flipside is also true."
Stocks were set to open
higher at 0700 GMT, with the
JSE securities exchange's
Top-40 futures index up 1.45
percent.
Africa's top bullion producer
AngloGold Ashanti Ltd said
on Monday that suitors have
expressed interest in buy-
ing or partnering in its idled
Obuasi mine in Ghana.
In fixed income, govern-
ment bonds weakened with
the yield for the benchmark
instrument due in 2026 add-
ing 1 basis point to 9.185
percent. - Reuters●
regioNAL News18
Rand steadies, focus on budget

19. BH2419

20. BH2420

21. The pound fell the most in
almost six months against
the dollar after London
Mayor Boris Johnson, one
of the U.K.’s most popular
politicians, said he’ll cam-
paign for Britain to leave
the European Union in a
June referendum.
Sterling dropped at least
1.2 percent against all its
16 major peers, revers-
ing a gain made on Friday
when Prime Minister David
Cameron secured a deal
on membership terms with
EU leaders in Brussels and
set a June 23 date for the
vote. Morgan Stanley ana-
lysts wrote on Friday that
Johnson’s decision would be
key for sterling, given his
popularity with the British
public.
“Even if an exit isn’t likely,
uncertainty and concerns
about it will continue and
weigh on sterling,” said
Kengo Suzuki, chief cur-
rency strategist at Mizuho
Securities Co. in Tokyo. “On
the economic front, there
isn’t much to undermine
the currency, but the uncer-
tainty over a potential exit
will cap sterling, keeping it
in a $1.40 to $1.50 range. ”
The pound dropped 1.4 per-
cent to $1.4204 as of 7:29
a.m. in London on Monday,
set for the biggest decline
since Aug. 26. It earlier
touched $1.4193, the low-
est since Jan. 29. Sterling
weakened 1.2 percent to
78.21 pence per euro.
Higher Volatility
A measure of traders’ expec-
tations for price swings in
the pound against the euro
during the next six months
climbed to the highest since
October 2011. Although
the announcement of the
date removes one aspect of
ambiguity for traders, they
now face months of polls
and campaigning that may
boost volatility further.
With traders already push-
ing back bets on the timing
of a Bank of England inter-
est-rate increase, the pros-
pect of Britain leaving the
world’s largest single mar-
ket had been causing fur-
ther concern, helping push
down the pound against all
of its Group-of-10 peers
this year.
“The pound’s weakness is
a product of uncertainty of
the U.K.’s ongoing member-
ship of the union, not the
timing of the poll,” said
David Page, a senior econ-
omist at AXA Investment
Managers in London. “Weak-
ness is likely to reflect any
increased perception of the
likelihood to leave and as
such is likely to be a con-
stant feature over the com-
ing months.”
Goldman Sachs Group Inc.
said earlier this month if
Britain quits the EU the
pound may fall to $1.15-
$1.20 -- levels last seen
in 1985. HSBC Holdings Plc
said in January a forecast
for a jump to $1.60 by year-
end relied on the nation
remaining in the 28-mem-
ber group.-Bloomberg●
internatioNAL News21
Pound falls most in 6 months as Johnson backs ‘Brexit’ campaign

22. BH2422

23. The campaign for Britain to leave
or stay as part of the European
Union (EU) is in full swing ahead of
a membership referendum on June
23.
This comes after Prime Minister
David Cameron sealed a deal for
"special status" in the EU on Friday
(Feb 19), paving the way for him to
push for Britain to stay in the bloc.
But his campaign has got off a
tough start as dozens of his Con-
servative Party members, includ-
ing London mayor Boris Johnson,
back Britain's exit from the EU, also
known as "Brexit".
Here's what you should know about
the issue:
WHAT'S IN THE BRITAIN-EU
DEAL?
Immigration
What Mr Cameron wanted: To
make EU migrants to Britain wait
four years before claiming in-work
benefits and state-subsidised hous-
ing. He also wanted to stop EU
migrants from claiming child bene-
fit and sending it back to their fam-
ilies overseas.
What he got: An "emergency
brake" for seven years on certain
benefit payments to newly arriving
EU migrant workers. A system to
be implemented will tie the amount
of benefits EU migrants in Britain
can claim for their children still liv-
ing in their home country to local
conditions there.
Sovereignty
What Mr Cameron wanted: To opt
out of the commitment to "ever
closer union", a central pillar of
the European project, in a "legally
binding and irreversible" way.
He sought an enhanced role for
national parliaments.
What he got: A carve-out on the
issue of ever-closer union - treaties
will be changed in future to make
clear Britain is not committed to
this. A "red card" measure would
allow a group of national parlia-
ments - making up more than 55
per cent of the 28 parliaments - to
be able to veto EU legislation.
Economic governance
What Mr Cameron wanted: To
ensure the EU does not use Brit-
ain's status as a non-euro zone
country against it. He asked for
a series of "legally binding princi-
ples", including recognition that
the EU has more than one currency
and that non-euro zone countries
should not face discrimination.
What he got: Protections to pre-
vent the City of London from being
discriminated against by euro zone
states. While Mr Cameron claimed
the EU had recognised more than
one currency "for the first time",
the language in the agreement is
vague. European Commission chief
Jean-Claude Juncker insisted the
deal did not include giving London
a veto over euro zone issues. Com-
petitiveness
What Mr Cameron wanted: To cut
red tape for business. He urged the
bloc to go further in ensuring the
free flow of capital, goods and ser-
vices so as to boost the economy.
What he got: Mr Juncker has made
improving EU competitiveness a
priority so this area presents less of
a problem, with the bloc agreeing
to "enhance competitiveness" and
take "concrete steps" to improve.
What are some pros and cons
of EU membership?
One of the biggest advantages
is free trade between member
nations, making it easier and
cheaper for British companies to
export their goods to Europe. Some
business leaders think the boost to
income outweighs the billions of
pounds in membership fees Britain
would save if it leaves the EU.
Free movement of people across
the EU also opens up job opportu-
nities for British workers willing to
travel and makes it relatively easy
for companies to employ workers
from other EU countries.
One downside of EU membership
is Britain is bound by EU rules and
regulations and cannot make trade
deals with important non-EU part-
ners.
WHO SUPPORTS BRITAIN
REMAINING IN EU?
- Mr Cameron will lead the cam-
paign for Britain to stay in the EU.
- Mr Jeremy Corbyn, leader of the
main opposition Labour party, has
said his party will campaign to stay
because of investments, jobs and
worker protection from the EU.
23 analysis23 analysis
Brexit showdown: Should Britain opt in or out of European Union?

24. 24 analysis24 analysis
- Ms Nicola Sturgeon, Scot-
land's first minister and head of
the pro-independence Scottish
National Party, has said she will be
at the "forefront" of efforts to stay
in, amid warnings that a " Brexit"
could trigger a second vote for
Scotland to leave the United King-
dom.
- Key business leaders including Sir
Richard Branson have spoken out
for EU membership, with the Virgin
founder warning that a departure
would be a "very sad day".
Barclays bank chairman John
McFarlane has warned that London,
Europe's premier financial hub,
would be "significantly" worse off
without the EU.
- Several cultural figures are also
pro-EU. Award-winning British
actress and campaigner Emma
Thompson has said leaving Europe
would be "a crazy idea". "Of course
I'm going to vote to stay in Europe.
Oh my God, it would be madness
not to," she told reporters at the
Berlin Film Festival.
- Prince William has never directly
addressed the issue but in a speech
at the foreign ministry in London in
February, the second in line to the
throne made some comments that
were widely interpreted in British
media as being in favour. "Our abil-
ity to unite in common action with
other nations is essential, it is the
bedrock of our security and pros-
perity," the prince said.
WHAT ARE SOME PROS AND
CONS OF BREXIT?
Britain can secure trade deals with
other countries such as China,
India and America.
The 350 million pounds (S$708 mil-
lion) saved in EU membership can
be spent on scientific research and
new industries. The country can
also take control in areas such as
employment law, health and safety.
The down side is Britain will still be
subject to the politics and econom-
ics of Europe, but would no longer
have a seat at the table to try to
influence matters.
The country now accounts for less
than 1 per cent of the world's pop-
ulation and less than 3 per cent of
global income (GDP). Each year
that goes by, these numbers shrink
a little.
The country will find it increasingly
hard to get its voice heard on top-
ics that affect its prosperity and
well-being if it goes it alone.
A study by the think-tank Open
Europe, which wants to see the EU
radically reformed, found that the
worst case Brexit scenario is that
the British economy loses 2.2 per
cent of its total GDP by 2030. How-
ever, it says that GDP could rise by
1.6 per cent if Britain could nego-
tiate a free trade deal with Europe
and pursued "very ambitious
deregulation".
WHO WANTS BRITAIN TO
LEAVE THE EU?
- Five of the cabinet's 22 members
have so far come out in favour of
Brexit:Justice Minister Michael
Gove, Work and Pensions Minis-
ter Iain Duncan Smith, Northern
Ireland Minister Theresa Villiers,
Sports and Media Minister John
Whittingdale and Chris Grayling,
the cabinet's representative in par-
liament.
- Mr Nigel Farage, head of the
anti-EU UK Independence Party
(UKIP), has advocated for Britain
to leave the EU all of his political
life. He tweeted: "June 23rd: our
golden opportunity.
Let battle be joined. We want our
country back". He said life outside
of Europe would mean "control of
our borders, global trade deals,
making our own laws. An exciting
future".
- Some entrepreneurs have spoken
out for Brexit, including vacuum
cleaner tycoon James Dyson. The
inventor was quoted by the Daily
Express as saying that he did not
want to stay in a Europe "domi-
nated and bullied" by Germany.
- Only very few cultural figures
have declared public support for
Brexit. Oscar-winning actor Michael
Caine has said Britain should leave
if it does not manage to negotiate
"extremely significant changes". "I
sort of feel certain we should come
out," the 82-year-old told BBC
radio. - Agence France-Presse,
The Guardian, The Week, The
economist, Straitstimes.com●