Old Mutual linked to Zim probe

[miningmx.com] –A South African company has been asked to disclose details on the nature of its mining operations carried out by a subsidiary in Zimbabwe’s Marange diamond fields.

Nicole Fritz, the director of the SA Litigation Centre (SALC), said on Wednesday that the SALC had made an application to Reclamation Holdings (Pty) Ltd for information related to the operations of its subsidiary Grandwell Holdings.

She said the application was made on Monday

It seeks to have the company disclose information on whether communities affected by its mining operations were compensated and whether there were consultations with the leaders of the affected communities before the mining operations began.

It is also seeking proof that the assurances given to Old Mutual, an investor in the New Reclamation group, that “its activities in Zimbabwe are to the benefit of all Zimbabweans and part of a “clean-up’ operation of the Marange diamond fields” had in fact been honoured.

It also wants proof that environmental impact studies were carried out and that social projects such as the building of schools and hospitals in the area took place.

Attempts to obtain comment from New Reclamation chief executive Michael Movsas were unsuccessful.

The Marange diamond mines have been steeped in controversy with reports in late 2008 revealing that soldiers were using forced labour to extract the diamonds.

There have also been concerns that the mining has taken place for the benefit of senior members of the ruling Zanu-PF with very little money going into government coffers.