THE London Stock Exchange-listed firm, Vast Resources, will not pursue legal action against Zimbabwe’s government, after regaining control of its diamond parcel that had been held by the central bank in Harare for about a decade, the Zimbabwe Independent can reveal.
The 129 400 carat diamond parcel was surrendered as evidence that the mining firm had extracted diamonds from claims previously owned by De Beers, which abandoned the diamond fields in 2006 after a decade of exploration, claiming it had failed to find viable reserves in Zimbabwe’s Marange district.
The Supreme Court recently ruled in favour of Vast Resources and ordered the Reserve Bank of Zimbabwe (RBZ)to release the gems.
This week, Vast confirmed in a statement that it was now in possession of the long-disputed parcel.
The company’s legal representatives told the Independent this week that the British firm would stick to an undertaking to halt any legal actions
“In terms of the settlement, Vast agreed that it would not take any legal action against the Zimbabwean government,” Titan Law senior partner Gerald Mlotshwa told the Independent, adding that the ruling against the government demonstrated that the courts are “independent and will protect investor rights where the case before them has merit.”
He also said Vast remained bullish about Zimbabwe’s investment climate and intended to return and reinvest in the country.
“They are emphatic that their experience in the country, in resolving this dispute, has demonstrated to them that Zimbabwe is indeed open for business,” he noted.
- Rampaging inflation hits Old Mutual . . . giant slips to $9 billion loss after tax
- Monetary measures spur exchange rate stability: RBZ
- Zim deploys IMF windfall to horticulture
- Banker demands $21m from land developer
Keep Reading
Mlotshwa added that the rough stones would be marketed in Dubai.
“These will be sold in accordance with established Kimberley Process (KP) procedures in an open and transparent manner in Dubai. As a listed company, Vast will be obliged to disclose the details of the sale in due course,” he said.
In another statement issued on Wednesday, the company said a significant portion of the diamonds was high-grade.
“The total quantity of diamonds included in the historic parcel is now estimated to be 135 139, 47 carats, of which an aggregate of 36 475, 26 carats have already been identified as gem quality,” the statement read.
“The company is in the process of selecting the first stones for cleaning and estimates that initial results will be available in the coming weeks. The board currently anticipates that the selling process will be conducted in a phased manner to maximise value for the company and its shareholders.”
In July 2023, Vast wrote to Zimbabwe’s Attorney General, through Titan Law, expressing misgivings about the government’s attitude over the deadlock.
Titan Law said under the settlement deal, Vast agreed to withdraw legal challenges, as it prepared to sign a new mining agreement with the Ministry of Mines and Mining Development.
“You may not have been privy to these discussions, which are documented and reported in the public media. But they are precisely the reason our client withdrew its appeal in September of 2019,” Mlotshwa said in the letter.
“Having withdrawn its appeal based on the government’s representations, the agreement was nonetheless not consummated at all. Whilst at all times looking promising, these settlement discussions have failed at the last hurdle, leaving our client with three options to pursue: Reinstating its appeal before the Supreme Court of Zimbabwe regarding Justice (Charles) Hungwe’s rescission judgment, simply seeking an order from the High Court regarding the return of its diamonds in the absence of a forfeiture order concerning the same.”
At that material time, Mlotshwa added that Vast was considering pursuing a damages claim in Zimbabwean or international courts.
“Given the refusal by the RBZ to obey an order of the High Court in circumstances where all parties agreed that there are no longer any appeals pending before the Supreme Court ... our client, a public listed company (may) pursue a more visible and aggressive approach in enforcing its rights whether at High Court or Supreme Court level,” he said.
Mlotshwa said Vast had instructed them that unless there were serious attempts to settle the matter, they would have no option but to take action against the government.
Vast Resources has mines and projects in Romania, Tajikistan, and Zimbabwe.
