(Ecofin Agency) - Diamond Mining Company (DMC) announced it was going to sue the government of Zimbabwe for breaching their contract as it ordered all diamond mining activities stopped, a company official said.

DMC, a 50-50 joint-venture between Zimbabwe Mining Development Corporation (ZMDC) and Pure Diamonds, said its contract stipulated that government’s mining arm was the one to renew licence.

It added that investment agreements were still valid and indefinite so Harare breached the contract. Asked if they would sue government in court if it does not budge from its position, the firm’s Managing Director, said: “If you are removing the concession it means you are in breach”.

Other mining companies could very well emulate DMC. Let us recall that government set a 90-days deadline for mining companies, which are yet to renew licences, to leave the mines they operate.

Louis-Nino Kansou