Gold autonomy threatened

Zimbabwe, in the midst of a historic economic turnaround since independence from Britain in 1980, has seen investor interest dry up in recent weeks over militant empowerment laws being pursued by President Mugabe and his Zanu (PF) party. Mugabe accused Anglo of failing to engage in corporate social investments, insinuating the company was against his broad-based and transformative empowerment.

”I want to say this to Anglo American, this company of Nicky Oppenheimer,” Mugabe told a 71st Chamber of Mines annual general meeting held in Victoria Falls Friday. “We want them to come out in the open and tell this nation why they have been just taking gold away. We dont see their empowerment initiatives. Do they still want to operate in partnership with our government? With our people? If not, we will take over their enterprises.”

It is the latest confrontation between Mugabe and Nicky Oppenheimer, heir to the wealthy South African family that built Anglo American into one of Africa’s biggest companies, and a major player in Zimbabwe’s economy. Since the government launched its empowerment drive a decade ago, including the seizure of white-owned farms for black resettlement, vast tracts of land owned by the Oppenheimer family have been compulsorily seized.

Anglo American recently said it had put a new platinum mining project and other new investments in Zimbabwe on hold until political and economic stability returned. Company officials were not immediately available to comment. The mining group has been an investor in Zimbabwe for 62 years. It is one of the largest mining and natural resources groups in the world and runs the Unki project, and also a 37.2 per cent shareholding in Tongaat Hulett, a sugar and starch business that has operations in Zimbabwe employing 16,000 people.

On the other hand Mugbe praised Rio Tinto and Zimplats for their empowerment initiatives and said it was “illustrative of the merits of a well-designed and beneficial community development project”.