Zimbabwe Diamond Firm to Sue Government for Breach of Contract

Reuters reported that Zimbabwe’s Diamond Mining Company (DMC) plans to sue the government for breach of contract. The move comes just after the government ordered diamond companies operating in Zimbabwe’s Marange fields to halt operations immediately.
As quoted in the market news:

DMC general manager Ramzi Malik said that its joint venture contract stipulates that renewing licences was the responsibility of the government, through its state mining arm Zimbabwe Mining Development Corporation (ZMDC).
He said the investment agreements were valid and indefinite and therefore Harare was in breach.
Asked whether DMC would go to court if the government did not reconsider, Malik said: “I am sure we will.”
“If you are removing the concession it means you are in breach,” Malik said.
Any action by DMC could trigger similar moves by other mining firms, that could set them on a collision course with President Robert Mugabe’s government, which has unnerved the industry with its policy to force foreign-owned mines to sell majority shares to locals.

Click here to read the full Reuters report.