African diamond group to float

Many fear the diamond trade funds war in the Congo

An African diamond company with links to the Zimbabwe and Congo governments wants to list on the London Stock Exchange.

Oryx has a joint venture with companies owned by the Zimbabwe and Congo governments, a report in the Financial Times said.

The move could raise millions of pounds to aid the cash-strapped government of Robert Mugabe.

A listing on the London Stock Exchange would raise questions about the extent to which the diamond trade are financing the wars in Africa, in which the Congo and Zimbabwe are heavily involved.

The Stock Exchange is understood to have investigated the planned listing of Oryx but has yet to make a judgement on the company.

June listing

Oryx intends to list on 13 June as part of its takeover by Petra Diamonds, a mining group listed on the Alternative Investment Market.

Oryx has a concession to mine diamonds in the Congo worth an estimated $1bn (£667m).

It has a profit sharing agreement with Osleg, a company owned by the Zimbabwean government and Comiex, a company owned by the Congolese government.

The funds raised from a listing could be used by the Zimbabwean and Congolese governments to enable them to pursue conflicts in the region.

A listing would also contravene the spirit of recent international efforts to stop the trade in diamonds from conflict regions.

Oryx has sought to play down its links with the conflict.

It has said that the concession could not count as "conflict diamonds" because the area was not controlled by rebels.

Zimbabwe's military intervention in Congo since 1998 has cost President Robert Mugabe's government millions of dollars.

If the Oryx listing is successful, it could help his government, which faces elections in coming months.

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