Financial Gazette (Harare)
Shame Makoshori
9 September 2008
Harare — Zimbabwe's mining industry is expected to lobby against the country's new mining law that seeks to expropriate 51 percent shareholding in existing mines under the country's controversial empowerment polices, The Financial Gazette can reveal.
Government is planning to make amendments to the Mines and Minerals Act specifically spelling out the measures it would implement in fulfilling the indigenisation law in the sector.
Some reports have suggested that government wants to take 25 percent without paying a cent, with the balance being transferred to locals under agreed terms.
The mining industry is one of the biggest foreign currency earners in the country, generating 53 percent of total receipts despite the deterioration of the economy that has forced the closure of many companies.
The Financial Gazette understands that the Chamber of Mines was two weeks ago instructed by captains of the mining industry to take advantage of the new composition of Parliament to seek a review of the proposed shareholding structures in mining operations.
After the general elections in March, the Morgan Tsvangirai led faction of the Movement for Democratic Change overturned a 28-year stranglehold by ZANU-PF in Parliament, winning 100 seats compared to the ruling party's 99.
The mining industry is convinced this new dispensation will help move issues in their direction.
Among the demands, which will be presented to the Ministry of Mines and Mining Development, is that if the government is serious about the full participation of locals, and its own participation in mining, it should apply the 51/49 percent shareholding to greenfield projects.
Greenfield operations are undeveloped mines, requiring extensive capital expenditure outlays.
The mining industry feels government is only interested in reaping where it did not sow by forcing companies to relinquish controlling stakes in going concerns.
The Chamber of Mines is expected to persuade government to concentrate on the development of strategic minerals like coal and gas, needed to power industry.
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