Mugabe dismisses mine furore
April 3, 2006
By From Reuters
Harare - Zimbabwe's President Robert Mugabe had dismissed an uproar over a draft law that could result in the state taking control of foreign-owned mines, saying the proposal was still being debated, state media reported at the weekend.
Last month the department of mines said the cabinet had approved amendments to the mining law "to indigenise 51 percent in some instances of all foreign-owned companies", stoking fears that Zimbabwe could become even less attractive to foreign investors.
Zimbabwe is battling a six-year recession. Mining has emerged as the top foreign currency earner after the collapse of the agriculture sector.
Mugabe, in his first public comments on the issue, told a meeting of his ruling Zanu-PF party's central committee on Friday that the government had yet to set a policy because discussions on the mining laws were still at an early stage.
"There is no policy in place just yet and the present furore is needless," Mugabe was quoted as saying.
"This is a paper that is at a very early stage of discussion in government."
The mines ministry in a statement to the Chamber of Mines said that the amended law would give the government 51 percent in "energy minerals mining companies", including 25 percent on a "non-contributory basis", on promulgation.
Industry officials say that "non-contributory basis" means the government would acquire shares without paying for them.
The proposals have rattled an industry hit hard by erratic electricity cuts and mine closures in the last five years as operating costs have spiralled.
Last month a senior official from the world's second-largest platinum producer, Impala Platinum (Implats), met Mugabe to discuss the proposals.
Zimbabwe, with the largest platinum deposits after South Africa, is the main area for Implats's future growth.
Mugabe said the country's resources belonged to locals who had the sole right to determine the level of foreign investment.
"There must be recognition that our minerals are a depleting and non-renewable resource, which we have allowed in the past to be wholly owned and exploited by foreign-owned companies for well over a century," Mugabe said.
"This will not be allowed in future."
Implats has interests in Zimbabwe, along with the world's biggest platinum producer, Anglo Platinum, and mining giant Rio Tinto.
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