The documents show that The New Reclamation Group (Reclam), through its Grandwell subsidiary and Core Mining and Minerals, had been appointed to mine diamonds in Marange, well before due diligence had been carried out on them.
The two South African companies, Grandwell partnered state owned Zimbabwe Mining Development Corporation (ZMDC) to form Mbada Diamonds while Core Mining and Minerals partnered ZMDC to form Canadile Diamonds.
Minutes of the ZMDC Board select committee on the due diligence investigation exercises on the two companies for Marange diamond fields, conducted in South Africa from 4-6 August last year, show that ZMDC appointed a select committee to conduct the due diligence exercise which found that Reclam, is not a mining house and is currently not involved in mining, let alone diamond mining.
“Further they have no diamond mining as part of their vision and growth strategy,” the documents show.
ZMDC complained about the South African company’s failure to follow investment procedures, a feat which shows that Reclam, Grandwell’s holding company was already in agreement with the Mines ministry before.
“There is need for Reclam to recognize the ZMDC Board’s authority, independence and effectiveness vis-a-vis Reclam’s interaction with the Ministry of Mines and Mining Development. Reclam as an investor should appreciate the importance of the ZMDC board to process the investment proposal through its governance process,” the minutes show.
The minutes show that by the time ZMDC conducted the due diligence exercise, Reclam and Core Mining and Minerals had already started mobilizing funds and equipment for the mining venture.
Diamond mining in Zimbabwe has been a contentious issue following the takeover of Chiadzwa diamond fields by the government which in turn authorised the two companies to exploit the resources.