GNU lowers Zim risk: mining firm

mining_1HARARE Political risk for investors in Zimbabwe is no longer as high as it was before formation of a power-sharing government by President Robert Mugabe, Prime Minister Morgan Tsvangirai and Deputy Premier Arthur Mutambara, a top mining house said last week.

Toronto Stock Exchange-listed mining giant New Dawn Mining told a mining investment conference in Harare last Thursday that the days of politically motivated and hostile economic policy decisions were over in Zimbabwe. Zimbabwe now has one of the most stable fiscal and monetary regimes in Africa, New Dawn president and chief executive officer Ian Saunders told hundreds of foreign investors from across the world who attended the conference.

I do not think the political risk in Zimbabwe will go back to where it was. If decisions continue to be made on economic reasons, we will be okay. I do not see the risk politically going to the past, Saunders said, appearing to have truly taken to heart Mugabes promises a day before to work to ensure economic stability. Mugabe had earlier urged international mining firms to pour fresh money into Zimbabwes deposits -rich mining sector, promising the miners a sound and stable operating environment.

“The government is committed to ensuring that the policy environment is stable, predictable and sufficiently attractive to guarantee investors good returns on their investment,” said Mugabe, speaking last Wednesday. However Mugabe has also vowed to continue with his farm seizure policy that has scared away foreign investors before because of its blatant disregard for the rule of law and property rights.

New Dawn owns Turk and Angellas gold mines near Zimbabwes second largest city of Bulawayo. After temporarily shutting down Turk Mine last year due to delayed payments for gold deliveries by the Reserve Bank of Zimbabwe, New Dawn in April sold its first two gold bars under the new mining regime that allows mining companies to retain all their hard cash earnings. Saunders has promised to restore Turk mine to full production.

Post published in: Economy

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