ZMDC warns government on US$93m debt as Amaplat es...

ZMDC warns government on US$93m debt as Amaplat escalates dispute to Canadian court

ZimNow Reporter

State-owned Zimbabwe Mining Development Corp. is scrambling to shield its assets from being seized over an unpaid US$93 million debt linked to a decade-old legal dispute.

ZMDC recently warned the Mines Ministry that Amaplat Mauritius, a company owed the money, plans to escalate efforts to claim the funds, including a June 30 court hearing in Canada to enforce the debt. Past attempts to seize Zimbabwe’s diamonds highlight the potential risks that the country faces in its international transactions if an adverse ruling is granted.

“The corporation has on many occasions requested that the Amari debt be assumed by the state,” ZMDC Chairman Paul Chimboza wrote in a letter to Mines Minister Winston Chitando.

The trouble began in 2014 when an international arbitration court ruled Zimbabwe must pay Amaplat for canceling nickel and platinum projects.

The debt, originally US$65.9 million, has ballooned with interest. Despite agreeing in 2021 to settle the amount, Zimbabwe has not paid.

ZMDC proposed that Bravura, a firm with platinum mining rights owned by Nigerian businessman Benedict Peters, pay US$15 million toward the debt. But Chimboza said Bravura only paid US$3 million and promised mining assets were never handed over.

Amaplat insists Zimbabwe’s government is fully responsible. “It is not for Amari and Amaplat to determine how the government sources funds for payment,” the company said, adding that the debt “remains the responsibility of the government.”

Meanwhile, ZMDC is left with few assets after most were transferred to another state firm, Defold Mine. Legal fights have already cost over US$500,000.00