Controversal mines Bill Dead in the Water

Controversial Mines Bill Dead in the Water

Harare - A draft government Bill forcing mining firms to transfer majority
stake to local blacks will no longer become law after Parliament adjourned
without passing the proposed legislation.

Clerk of Parliament Austin Zvoma
told Zim Online on Tuesday that under parliamentary procedures and
regulations, the controversial Bill that was tabled in Parliament last
December naturally lapsed after the House stopped sitting a fortnight ago.
Parliament will resume sitting after the presidential, parliamentary and
local government elections on March 29 and the new government will have an
option to reintroduce the Mines and Minerals Act Amendment Bill. “The Bill
is no longer of any effect at all,” Zvoma said. “Parliament will start
sitting after the polls and this means the Bill has lapsed. It will be up to
the new government whether or not to reintroduce it into a new Parliament.”
The controversial mining law that analysts have warned could deliver a
killer-punch to an economy on the verge of total collapse proposes to force
foreign-owned mining firms to transfer majority shareholding to indigenous
Zimbabweans. This includes giving the government a free 25 percent stake.                               President Robert Mugabe, whose ruling Zanu PF party is widely expected to
retain absolute majority in Parliament, has defended the draft Bill as
necessary to ensure blacks also have a share of the country’s lucrative
mineral wealth. Mines Minister Amos Midzi was not immediately available to
shed light on whether the government would resume attempts to pass the law
if it is re-elected in March. Under the proposed law, the government will
take over 51 percent of firms mining strategic minerals such as coal and
coal-bed methane, with the state taking 25 percent of that stake free. The
government will also take 25 percent shareholding in precious minerals such
as gold, diamond and platinum while another 26 percent will go to local
blacks. Some foreign-controlled mining firms have threatened to scale down
operations or withdraw from the country altogether if Harare goes ahead with
plans to force them to transfer shareholding to locals. Zimbabwe is
grappling with a severe economic crisis blamed on Mugabe’s controversial
policies, such as the seizure of white-owned farms to resettle landless
blacks. The veteran ruler, in power since independence from Britain in 1980,
denies mismanaging the economy and says it has been sabotaged by foreign
firms and western nations plotting to undermine his rule.


Post published in: News

Leave a Reply

Your email address will not be published. Required fields are marked *