Financial Gazette (Harare)
27 June 2009
Harare — MINING corporations operating in Zimbabwe on Tuesday defied an order by Mines and Mining Development Minister, Obert Mpofu, to boycott an international mining conference organised in London by a South African resource industry consultancy after the government official was denied a visa to the United Kingdom.
As many as 11 miners, including co-sponsor Mwana Africa plc, attended the 6th Annual International Mining in Africa Conference, organised by Cape Town-based Omega Investment Mining Partners under the theme "Mining in Zimbabwe -- A New Beginning?".
Other sponsors included local commercial bank, BancABC and London-based investment bank, Ambrian Capital Plc.
Mpofu, one of the senior government officials banned from travelling to the United States and the European Union due to sanctions, had directed the Chamber of Mines, the country's official association of miners, to shun the event in protest.
"The government was not represented at the conference, yet the topics were on mining policies and regulations in Zimbabwe," Mpofu said.
"They can say anything in their individual capacities, but whatever they discuss has no bearing on policy issues here."
Chamber of Mines president, Victor Gapare, chief executive, Joseph Malaba and other senior officials from the association did not attend the event, either in compliance with the decree or for other reasons.
In a telephone interview with The Financial Gazette, Gapare said he failed to attend because of other business commitments.
However, several companies affiliated to the organisation streamed to London where they discussed numerous topics related to mining in Zimbabwe, including the new inclusive government's approach to mining; the perspective of companies that have operations in Zimbabwe; the regulatory framework for mining in Zimbabwe; doing business in Zimbabwe today and sources of funding available for mining in Zimbabwe.
The local mining industry, which felt the conference was important for a sector that is severely under-capitalised, provided two speakers with another coming from a local banking corporation.
The apparent fallout has staked barricades in the way of a politically-inflamed policy dialogue between the industry and the government over some contentious aspects of the Mines and Minerals Amendment Bill, expected to start soon after the divisive conference.
The foreign-dominated local extractive industry contests provisions related to non-contributory equity, foreign equity restrictions and direct government involvement in mining activities.
In the Amendment Bill, the government has proposed to restrict foreign investors to a maximum of 49 percent shareholding in "big mines", 25 percent of which would be non-contributory on precious minerals such as gold, diamond, platinum and emeralds and on energy minerals like coal.
A 51 percent voting interest has been reserved for either government investment institutions, local entrepreneurs or a consortium of such entrepreneurs.
"This is tantamount to surrendering board control or management of your own investments and that is scaring," a local mining executive said preferring to remain anonymous.
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