Vast to auction diamonds held by RBZ

Alternative Investment Market (AIM) listed Vast Resources says it is getting ready to sell 129 400 carats of rough diamonds, which have been in the custody of the Reserve Bank of Zimbabwe (RBZ) since 2010.

The company also said it would soon shift focus to a potential mining project in the Marange diamond fields.

This comes after the High Court of Zimbabwe ordered the release of Vast Resources’ diamonds in February this year.

The parcel of diamonds has been in the custody of the Reserve Bank since 2010 when Vast surrendered the gems as evidence that it had exploited diamonds on claims previously owned by DeBeers.

Vast left Chiadzwa diamond fields in 2006, claiming it had failed to find viable reserves, following a decade of exploration. A dispute with the Government of Zimbabwe over the release of the parcel ensued.

“In Zimbabwe, the company is preparing for the release of its diamonds previously mined by the company and preparing for their marketing,” the company said in an update on debt funding.

“Upon the finalisation of the process, the company will recommence its focus on the finalisation of the mining agreement on the community diamond concession in the Marange diamond fields.”

The plans were revealed during a recent press conference where the company announced the extension of its debt repayment to its creditors.

“Further to the announcement made on October 2, 2023 regarding the company being in discussions with Alpha and Mercuria regarding a further extension that will allow additional time to finalise the settlement of its historic claims outlined in previous announcements, the company is pleased to announce it has agreed a further extension with Alpha and Mercuria to November 30, 2023 and it is now concluding the legal documentation.

“All terms and conditions of the debt remain the same,” said the company.

Vast Resources chief executive officer Andrew Prelea said in March “The settlement is following the path of consensual due process and we appreciate the Government’s continuing assistance in bringing this matter to a close.”

The lot has not been released to date and the company in a trading update said it will not continue with their investment till they get hold of their diamonds.

“In Zimbabwe, the company is preparing for the release of its diamonds previously mined by the Company and preparing for their marketing,” the company said in a trading update.

“Upon the finalisation of the process the company will recommence its focus on the finalisation of the mining agreement on the Community Diamond Concession in the Marange Diamond Fields.”

Zimbabwe is envisioning a US$12 billion mining industry starting this year.

Of the US$12 billion, gold, and platinum diamonds will contribute US$4 billion, US$3 billion and US$1 billion, respectively.

Chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same.

Lithium will contribute US$500 000 while other minerals will constitute US$1,5 billion

Mining is a crucial part of the country’s economy, making up over 60 percent of annual foreign currency receipts and 13 percent of the country’s gross domestic product.-herald