Bloomberg/Taylor Weidman

Economy

Zimbabwe mining firms want ownership restrictions scrapped

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The government plans to scrap the restrictions that stipulate that the mines must be 51 per cent owned by black Zimbabweans, but is yet to change the legislation.

Thursday 11, April 2019

(Bloomberg) --Zimbabwe’s Chamber of Mines, which represents most of the mining companies active in the country, wants ownership restrictions on platinum group metals and diamond operations officially scrapped.

Batirai Manhando, the President of Zimbabwe Chamber of Mines, said, “The indigenization regulations have been scrapped except for platinum and diamonds, we would also want this law scrapped officially so we can get industry players coming in.”

 “These are areas that require huge capital and if you put restrictions I do not think you would be able to attract a lot of capital,” added Manhando.

Senior government officials have repeatedly said that the ownership laws, put in place during the presidency of Robert Mugabe, will be scrapped to help attract investment to an economy decimated by years of misrule.

Mining is Zimbabwe’s biggest source of foreign exchange.

While the nation’s finance minister Mthuli Ncube has previously said the local ownership, law would be scrapped for all minerals, Polite Kambamura, the Deputy Mines Minister said that the government will, for now insist that local investors retain control in diamond mining even as it seeks to lure mining giants such as Russian giant Alrosa.

Potential discoveries of gems in the southern Masvingo province means government needs time to gauge the potential of the industry, Kambamura said.

 

TAGS : Zimbabwe Chamber of Mines, Mthuli Ncube, former president Robert Mugabe, platinum, diamonds, Indigenisation law, gold

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