The decision by the government will require foreign companies to give 51% control of their operations to Zimbabweans.
Zimbabwe Mines Minister Walter Chidhakwa was quoted by Reuters as saying: "We are very clear, this is a regulatory matter and we have said to them the only way you can participate in diamond mining in Zimbabwe is by being in this company."
In line with efforts to enhance transparency, the government earlier planned to merge certain diamond firms in the Marange area in Chiadzwa.
According to Chidhakwa, the government will have 50% interest in the new entity and Rio Tinto’s Murowa mine will also comply with the indigenization and economic empowerment act.
Shareholding of the companies in the new firm will be decided based on the value of their equipment.
The companies that do not agree with the plans would be compensated and allowed to leave, Chidhakwa added.
Murowa mine, which is 78%-owned by Rio Tinto, produced 344,000 carats last year.
