Belgium Calls For ZMDC Sanctions To Be Lifted
News: European Union (EU) sanctions that are in place against state-owned diamond mining company Zimbabwe Mining Development Corporation (ZMDC) may be lifted if the Belgian government continues to argue their case, Mineweb reports. Belgium has stated that the EU had agreed to lift the sanctions once a fair election had taken place in Zimbabwe and that as the EU has not rejected the election results the sanctions should be lifted . ZMDC produced 8mn carats of diamonds in 2012.
BMI View: Zimbabwe's mining sector is set for rapid development as the country recovers from two decades of declining output. Zimbabwe is richly endowed with deposits of chrome, gold, nickel and platinum, among other minerals. Its gold reserves are among the largest in Africa, while it has the world's second largest platinum reserves. Another segment that has caught the attention of miners in Zimbabwe is diamonds, following the discovery of a number of significant kimberlites. Forecasting growth rates for the Zimbabwean mining sector is a highly uncertain process at present, with so much of the sector's direction governed by political events.