3 January 2018

Zimbabwe: Removing 51 Percent Law On All Minerals Will Lure More Foreign Investors. Says Unki Boss

Photo: Jerry Chifamba/AllAfrica
Harare CBD (file photo).

A local platinum mining company manager Walter Nemasasi said the 49 to 51 percent threshold imposed on platinum group of metals and diamonds should be lifted to lure more investors and improve productivity.

The Emmerson Mnangagwa led government when it came into power in November amended the controversial empowerment policy which forced businesses to ensure 51 percent equity ownership by black locals.

Presenting his 2018 national budget statement Finance Minister Patrick Chinamasa lamented the flight of foreign direct investment from the country in the past few years and said the controversial 49-51 percent local shareholding structure shall now only apply to diamond and platinum mining.

But in an interview Unki mines general manager Walter Nemasasi said removing the conditions set by the Indigenisation Laws on platinum will help to lure more foreign investors and increase productivity.

"The conditions should be removed totally on all natural resources why leave it on platinum and diamonds only," said Nemasasi.

"I am sure it will all come to our senses and agree on the way forward."

The Unki mines general manager added, "Its early days for us to say much, we will watch and sooner or later we will see if we are moving forward, sideways or backwards."

"Diamonds and platinum are the only sub-sectors designated as 'extractive', why."

In his budget, Chinamasa announced that, in the extractive sector, that is mining, the proposed amendment will confine the 51-49 percent indigenization threshold to only two minerals, namely diamond and platinum.

"The 51-49 percent threshold will not apply to the rest of the extractive sector nor will it apply to other sectors of the economy which would be open to any investor regardless of nationality," said Chinamasa last year.

The 51/49 threshold will not apply to the rest of the extractive sector, nor will it apply to the other sectors of the economy, which will be open to any investor regardless of nationality.

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