Rio Tinto leaves Zimbabwe

By Editorial Board - 26 June 2015 at 9:00 am
Rio Tinto leaves Zimbabwe

Rio Tinto, the global mining giant, has left Zimbabwe after 60 years of business in the country. The decision came after they sold their 78% stake in Murowa Diamonds and 50% interest in Sengwa Coal to RioZim.

 “Rio Tinto believes that the future of these assets can be best managed by entities with existing interests in Zimbabwe,” Rio Tinto said in a statement regarding the sale to RioZim.

The exit seems likely to be due to the controversial announcement that the Zimbabwean government plans to merge all diamond companies into one state-owned entity in which the government will have a 50% interest whilst other operating companies will share the other half.

Zimbabwe’s Mines and Mining Development Minister Walter Chidhakwa is quotes by The Herald as reasoning that “we need to create a dominant player in the diamond sector and, more importantly, the value chain. You can never go onto the international market without a big player on your side. There are five in the world currently; we need to create our own.”

 

 

Editorial Board

Editorial Board

Africa Times is an independent participative online news site for Sub-Saharan Africa. We aim to empower all African voices through publishing content by a range of people, from academics to bloggers. We are dedicated to bringing the world an African view on life, up-to-date African news and analysis.

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