Zim lays claim to 30% of miners
2005-08-25 10:04
Special Report
A classical music presenter for the BBC has been arrested and is in custody in Zimbabwe.
Harare - A bill forcing all foreign-owned mining companies operating in Zimbabwe to cede 30% of their shares to indigenous business people is ready to be tabled in parliament, the state-owned Herald reported Thursday.
The legislation would see the amendment of the Mines and Minerals Act, an industry source told the newspaper.
Legislation already in place to give local investors a 15% stake in mining has failed to yield results, reports AFP.
Local investors are still battling to raise US$31m to purchase shares in Zimplats, said The Herald.
"This (proposed legislation) is about correcting anomalies in the sector which previously marginalised indigenous people in the mining sector," the source said.
Foreign-owned firms currently dominate the mining sector here.
Zimbabwe's mines, which produce gold, palladium, chrome, platinum and diamonds among other minerals, generate about 42% of the country's foreign currency earnings.
The big, foreign-owned miners currently operating in Zimbabwe include South Africa's Anglo Platinum, Impala Platinum, which owns 82% of Zimplats, Rio Tinto from Britain, Delta Gold from Australia, Falcon Gold from Luxemburg and Metallon Gold which owns mines in Zimbabwe and South Africa.
Impala Platinum last year said it would hold back on the R4.7bn expansions it had in the pipeline until a specific agreement could be put in place between South Africa and Zimbabwe that addressed things like ownership.
AngloGold Ashanti, another South African-based resources group, already sold its Zimbabwean operations to a local company, Mwana Africa, after plans to lay claim to a part of foreign miners first emerged in September 2004.
According to The Herald, the handover of the 30% stake will have to be completed in the next 10 years.
"Companies shall achieve a 30% ownership of the industry assets in 10 years of which 20% shall be achieved in two years, 25% in seven years and 30% in 10 years from the date on which these regulations take effect," the paper quoted its source as saying.
- Sapa-dpa
- SAPA