FICCI International Conference on Gems and Jewellery held in Mumbai

Gem & Jewellery industry is expected to grow from US$45 billion to US$100 billion

Post By : Diamond World News Service On 16 January 2010 1:05 PM
According to a report in Mineweb Rio Tinto is doubtful about continuing its gold mine that it operated in Zimbabwe, and plans to shut it down. The uncertainty is attributed to the fear of the nationalization of some of Zimbabwe's mines, a result of the new mining laws declared in the country and the unstable inflation rate in Zimbabwe. Rio Tinto, as reported also intends to suspend a $60 million investment which it had allotted to develop a new project in the country.%%The new mining laws which are awaiting the president's approval, state that the exploration companies are required to hand over 51% of the mines to black residents of Zimbabwe. With this, the government’s obligation to the companies would be only 26% compensation while 25% will be nationalized without any reparation.%%"It seems there will be no change in the pricing regime in the foreseeable future and further decisions about the mine's future may have to be made in light of the proposed empowerment laws," Rio Tinto said. Rio Tinto owns 56% in the RioZim mine.

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