Core Mining Seeking Injunction against Sale of Chiadzwa Diamonds
Post Date: 08 Dec 2010 Viewed: 471
Core Mining, a South African diamond mining company, is seeking a court injunction to stop to sale of diamonds mined by the Canadile group at Zimbabwe's Chiadzwa diamond fields, SW Radio Africa reports.
Canadile was originally a joint venture between Core Mining and the state-owned Zimbabwe Mining Development Corporation (ZMDC), but at the beginning of November the ZMDC took control, claiming that Core Mining had not met its investment obligations or begun exploring for diamonds. After the ZMDC took the reins, all 12 of Core Mining's directorship were blacklisted from conducting mining business in Zimbabwe.
In an open letter, Core Mining claimed that the ZMDC unilaterally took over the Canadile operations; kept Canadile management out of daily operations; kept Core Mining shareholders from entering the country and "appropriated the entire diamond stock of Canadile Miners."
Futhermore, Core Mining said it has issued a warning to "all relevant parties" in the diamond industry to "exercise maximum caution on the provenance of [Chiadzwa] diamonds." The diamond company added that it would "exercise its full rights by any means possible on any Canadile Miners' diamonds."