RANI Investment, the majority shareholder in Limpopo Mining Resources, a company that owns the River Ranch diamond mine in which the late general Solomon Mujuru held a minority stake, announced yesterday it is negotiating with government for the sale of its stake in the mine at a yet to be disclosed price. Should the deal be concluded, government will consolidate its position as the leading player in the country’s diamond industry.
Government, through the Zimbabwe Minerals Development Corporation, has various joint ventures in the contested Marange diamond concessions such as Mbada Diamonds, Marange Resources, Pure Diam and Anjin Investments. Only Murowa Diamonds, owned by Rio Tinto, will remain the diamond company in which government does not have direct involvement.
Rani Investment said the decision to sell its stake in River Ranch diamond mine was part of its efforts to realign the group’s financial and management resources to its core business — hospitality and tourism — in Zimbabwe and the region.
In a statement, Rani Investment said it believed government was best placed to develop and expand the mine’s operations.
“The decision to sell its stake to the appropriate government entities came about as efforts to recapitalise the mine, including from the minority shareholders, have failed in the past few months,” said the company in a statement.
Rani Investment is a Dubai-based Investment Holding firm for the Aujan Group with more than US$300 million of committed investments in the Middle East and Africa.
Its mission is to ensure superior returns to its shareholders through pioneering investments that are guided by its philosophy of long term horizon and tolerance for measured risks.
According to the company’s website, Aujan Group is a Saudi group founded in 1905 as a trading company in Saudi Arabia, Bahrain, and Kuwait.
The company has subsidiaries in manufacturing, real estate, hospitality, mining, trading, and distribution sectors.
Rani Investment is owned by Adele Aujun, a Saudi billionaire.