Diamond mine goes under

A diamond mining company linked to the late Retired Army General Solomon Mujuru has filed for an order at the High Court to wind up operations and the appointment of a provisional liquidator.

In a statement, Limpopo Mineral Resources, formerly River Ranch Limited — said the company had applied for liquidation as it could no longer sustain itself as a going concern.

Limpopo Resources owns 80% of River Ranch diamond mine in which Mujuru’s family holds a 20% stake through Khupukile Resources, whose directors are former Zanu PF legislator Tirivanhu Mudariki and Mujuru’s daughter, Nyasha Mujuru del Campo.

Official figures show that the company sold diamonds worth $1,9 million out of the $246 million recorded in the first three months by the diamond sector.

Rani Investments chief executive officer Salim Bitar said the majority shareholder had been subsidising the running of the mine, while negotiating its sale with junior partner Khupukile Resources and the Zimbabwe Mining Development Corporation (ZMDC).

“Negotiations with the ZMDC had not yet been concluded, but with no offer having yet been made, the shareholders had decided it best to apply for liquidation.

“If ZMDC wished to acquire the mine, it could continue negotiations with the court appointed liquidator,” he said.

Bitar said Rani wanted to realign its financial and management resources to focus on its core business of hospitality and tourism in Zimbabwe and the region.

“The decision to sell its stake to the appropriate government entities came about as efforts to recapitalise the mine, including from the minority shareholders, had failed in the past few months,” said the company in a statement in March.

Rani Investment is a Dubai-based Investment Holding firm for the Aujan Group with more than $300 million of committed investments in the Middle East and Africa.

It is owned by Adele Aujun, a Saudi billionaire.

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