The Supreme Court has ordered the Zimbabwe Mining Development Corporation and the Minerals Marketing Corporation of Zimbabwe to cease operations on diamond mining claims formerly owned by African Consolidated Resources in Chiadzwa pending finalisation of the ownership wrangle.

This means the two firms exploiting the diamond fields should also stop, but retain the right to remain on the sites pending a solution.

In the full judgment explaining a Supreme Court order handed down on January 25, Chief Justice Godfrey Chidyausiku emphasised that 129400 carats of diamonds seized from ACR in 2007, when Government cancelled their permits, should be kept at the Reserve Bank of Zimbabwe.

He said a letter earlier written by the Registrar of the Supreme Court informing the concerned parties of the court’s intention to give reasons for the order of January 25 should not be misinterpreted as reversing the order.

The Chief Justice said if anyone had removed the diamonds from the central bank, that would be deemed unlawful and contemptuous of the highest court in the land.

“The balance of convenience favours the applicants (ZMDC and MMCZ) remaining on the site of the claims pending appeal, but they must cease all mining activities and it is so ordered,” said Chief Justice Chidyausiku in the judgment made available yesterday.

“Allowing the applicants to continue mining has the potential of causing irreparable damage to the respondents should the appeal fail.

“The diamonds are to be kept at the Reserve Bank of Zimbabwe until the finalisation of the appeal.

“To interpret the letter of the Registrar to the parties as reversing my very clear order of January 25, 2010 that the diamonds are to be kept at the Reserve Bank pending appeal is the height of mischief.

“If anyone has removed the diamonds from the Reserve Bank, he has done so unlawfully and in contempt of the order of this court.

“The diamonds must be returned to RBZ immediately in order to purge the contempt. Failure to do so should attract serious consequences,” he added.

ACR and its five subsidiaries – Canape, Dashaloo, Heavy Stuff, Possession and Olebile Investments – owned the claims until 2006 when Government cancelled their permit.

Through their lawyer, Mr Jonathan Samkange of Venturas and Samkange, ACR successfully challenged the cancellation in the High Court and Justice Charles Hungwe validated it.

He ordered the seized diamonds to be returned to ACR.

But ZMDC and MMCZ appealed against the judgement in the Supreme Court. That appeal is yet to be determined.

Chief Justice Chidyausiku’s order instead directed the diamonds to be taken to the RBZ as a neutral and secure place, pending finalisation of the matter.

Different interpretations were drawn from the January 25 order with some parties seeking to evict the firms that were on the disputed claims while others suggested the Registrar’s letter meant the Chief Justice had completely set aside the High Court order.

(Source)