31 May 2018

Zimbabwe: Relax 51/49 Requirement On Diamond, Platinum Mines, Urges Zimbabwe's Mining Chamber

Zimbabwe's mining chamber has asked the government to allow majority ownership by foreign investors in diamond and platinum mines, a move it says will unlock more investment for the capital intensive sector.

In March this year, the southern African country changed its empowerment law to limit majority ownership by state entities to only diamond and platinum mines and not the entire mining sector as in previous version of the legislation.

The Indigenisation and Economic Empowerment Act of 2008, which was designed under former president Robert Mugabe's administration to increase black Zimbabweans' share of the economy, was widely blamed for investor apathy in the country. It was also seen as opaque and open to abuse, to the detriment of foreign investor confidence.

Chamber of Mines president, Batirai Manhando, who appeared before the Parliamentary Portfolio Committee on Mines and Energy this week said that the two sectors were very capital intensive and would require around $5 billion investment.

"We do appreciate government's position to relax other minerals, but I think this should have been extended to all minerals, more so, if you look at platinum and diamonds which are very capital intensive minerals," Manhando said.

"We need more than $5 billion capital for their mining and beneficiation and these require foreign direct investment, and if we stick to the 51/49 threshold then we are restricting FDIs and investors will not bring in their money."

Zimbabwe has the second largest known platinum deposits after South Africa and the two largest producers in the world, Anglo American Platinum and Impala Platinum Holdings have operations in the country.

Zimbabwe

Govt Declares War on Cholera

Government has set up an inter-ministerial committee to come up with a lasting solution to the cholera outbreak in… Read more »

See What Everyone is Watching

Copyright © 2018 The Source. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.