Anjin Investment has lost a US$20 million business deal after a European diamond processing firm had its money to buy the diamonds from Anjin intercepted and frozen by the United States. This is part of intensified efforts by the US and the European Union to enforce the embargoes imposed on Zimbabwe as they feel the diamonds will bust the illegal sanctions.
Anjin Investments located at Chiadzwa, Marange, lost the deal early this month, after Washington froze the Belgium based firm’s bank account.
Anjin Investment secretary, Mr Charles Tarumbwa, said this on Thursday while giving a briefing of the company’s operations and challenges to the Parliamentary Portfolio Committee on Mines and Energy, which is on a familiarisation visit at Chiadzwa.
“The good thing was that we had not released the diamonds as we waited for the money to come to Zimbabwe first. But the freezing of the money has an adverse effect on us because good and well paying diamond buyers are in Europe, so they become very hesitant to buy our gems in the wake of the freezing of the monies,” said Mr Tarumbwa.
The US and the EU imposed illegal sanctions on Zimbabwe after the country embarked on a land reform programme aimed at correcting historical imbalances on the resources where the minority White controlled vast tracts of land. The embargos have since been extended to some firms including diamond extracting firms such as Mbada Diamonds and Diamond Mining Corporation.
“There is need to have a smooth movement of money, otherwise we will continue to have challenges and this will affect the fiscus, our hospitals and other institutions.
“We will, however, not sell the Zimbabwean diamond like tomatoes, we will not accept ridiculous prices,” Mr Tarumbwa said.
He said the firm was producing around 3 000 carats a day, a slump from 10 000 that they used to produce owing to the fact that they were now mining underground, requiring heavy earth moving equipment and time consuming mining methods.
Committee chairperson and Guruve South MP, Cde Edward Chindori-Chininga (Zanu-PF), lauded Anjin and Marange Resources after they toured the two firms.
Cde Chindori-Chininga said Anjin’s investment had gone a long way in clearing a lot of misconceptions peddled about the firm which is a joint venture between the Chinese and Zimbabwe.
“If you look at the type of investment, it clearly shows their commitment. A lot has been said about Anjin and as a committee we can now stand up and say this is not true,” said Cde Chindori-Chininga.
He applauded Marange Resources management for their openness.
“What we have seen here is very exciting. The real feeling is that you should not relegate yourself . . . you need to continue expanding yourself into a Zimbabwean owned conglomerate,” he said.