• Mon. Apr 15th, 2024

Vast’s closure settlement process in Zim poised for end of April

ByEconomic Times

Apr 13, 2023

By ETimes

Vast Resources expects the settlement process in Zimbabwe to be completed by the end of April or the early half of May.

In February of this year, the company said the High Court of Zimbabwe had ordered the release of its 129,400 carats of rough diamonds, which have been in the custody of the Reserve Bank of Zimbabwe (RBZ) since 2010.

The company, however, received a follow-up communication from government officials through its legal counsel, indicating that the matter will be resolved by the end of this month or early next month.

“Due to the sensitive nature of the process the settlement in Zimbabwe has taken longer than the market has anticipated,” Vast Resources chief executive officer Andrew Prelea said.

“However, the settlement is following the path of consensual due process and we appreciate the government’s continuing assistance in bringing this matter to a close.”

The competitiveness of doing business in the mining sector has been negatively affected by the high cost of doing business in the southern African nation coupled with high-cost drivers, poor infrastructure, unrealistic foreign currency controls accelerated by forex receipts retention, high tax burdens and policy flip-flops.

Zimbabwe is envisioning a US$12 billion mining industry starting this year.

Of the US$12 billion, gold, platinum diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively.

Chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same.

Lithium at US$500 000 while other minerals will constitute US$1.5 billion – Harare

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