Nationalisation of mines still on the table

VICTORIA FALLS - Proposals by President Robert Mugabe's government to take control of foreign-owned mines are under negotiation with the industry.
"Amendment to the Mines and Minerals Act is a process, indeed a long process, that comes with attitudes, panic and self-destructive socio-political

perceptions along the way, which require our vigilance and determination to ensure we sail and dock together in this process,” Tinos Rusere, Deputy Mines Minister told a recent annual general meeting of the Chamber of Mines.
His speech was in sharp contrast to that of his boss Mugabe who had told a rally in Budiriro the day before that the government would go ahead and seize 51 percent stake in mining companies, including 25 percent, which it would not pay for.
The Chamber of Mines has presented a less radical proposal to the government on empowerment but is yet to make it public.
Mining is now Zimbabwe’s largest single foreign currency earner with Rusere saying it now accounts for about 4 percent of Gross Domestic Product and contributes more than 40 percent of all foreign exchange earnings in the country.
Foreign investors have been rattled by the government plans forcing most to withhold various projects to expand output.
“The mining industry is ready to grow, it is like a rocket on a launch-pad. The missing ingredient is confidence,” the Chamber’s president Jack Murehwa told delegates.
“There are many projects in the wings, there are many investors in the wings who are out there ready to come and grow with us,” Murehwa added.
Zimbabwe is on the brink of economic collapse as it battles a steep recession blamed on mismanagement by Mugabe’s government. Rusere sought to calm the industry by saying the government was still negotiating with miners over the issue.
“We can not make quick decisions and come up with the wrong things….be assured that we want to come up with the best laws,” he said. – ZimOnline

Post published in: Economy

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