Whites must be our servants – Mugabe

The regulations are targeted at mining firms with a net asset value of $1million or more. The law gives the government 51 percent in “energy, minerals mining companies”, including 25 percent on a “non-contributory basis meaning that the government would acquire the shares without paying for them.

By rushing to confiscate foreign firms before elections that he wants this year, Mugabe has effectively slammed the door on international aid. He described the move as “just one means of getting back our country.” Earlier on Sunday, Mugabe had told mourners at the burial of Zanu (PF) treasurer general, David Karimanzira, that those mining companies that wished to remain in the country must cooperate.

“Those whites who want to be with us, to be our servants, those outsiders who want to work with us fine, they come in as partners, we are the senior partner, no more the junior partner,” said Mugabe. “Varungu vanoda kutisevenzera ngavauye vaite mabhoi edu, asingade hamba. Saka hazvimanikidzwe. Hapana chekutya. (Whites who want to work for us are free to come to be our servants, those who dont want can stay out. No one is forced to come and invest here. We are not afraid).”

“Tinotora pachena (We will confiscate the mines in broad daylight),” Mugabe continued. “We are taking. Listen Britain and America: this our country. Right? If you have companies which would want to work in our mining sector, they are welcome to come and join us, but we must have our people in those companies as the major shareholders. So let that lesson go deep.”

A day after Mugabe’s threats, a government gazette rolled off the government printers to enforce the decree. “Lonhro, Anglo American, Rio Tinto you must transform and become Zimbabwean, we want black people, our people, our young people. It’s another dimension to the struggle. Let that lesson go deep,” Mugabe said. The Chamber of Mines of Zimbabwe said miners were willing to sell only 26 per cent stake to local owners as part of the nationalization plan.

The sector committee on indigenization in mining recommended a threshold of 26 per cent, which is what the chamber is comfortable with, said Chamber of Mines President, Victor Gapare. The new legislation follows Mugabes pronouncements that Western countries must pay for imposing so-called “sanctions” against his regime. MDC spokesman Nelson Chamisa told The Zimbabwean his party had nothing to do with the gazette.

“Government programmes must be built on basis of consultation and agreements with stakeholders,” Chamisa said. “This kind of policy making contradicts our philosophy of consultation and consensus.” Chamisa said the MDC feared Mugabe’s policies would kill the economy. “This is the kind of policy mix that will target the very heart of the economy. It will affect investor confidence, it will also affect citizen confidence in government.

The MDC spokesman said the party’s position was that the best way for empowerment was to create new wealth rather than converting and destroying existing wealth. We must create new entrepreneurs and its possible,” Chamisa said. “We need investment in Zimbabwe. We have been at the forefront of campaigning to investors to come to Zimbabwe. Our colleagues in Zanu (PF) don’t understand that capital is shy, it hates terrorism. This is a tragedy. We have people in authority who have no appreciation of common good. They get seized with the last supper mentality: eat now and think later. We are saying think now and eat later.”

The regulations have fanned fears among mining investors, including the world’s second largest platinum producer Implats, which has protested about the regulations, together with Anglo Platinum Ltd and mining giant Rio Tinto Plc. The resurgent gold output in Zimbabwe, once Africa’s third-biggest producer a decade ago, may grind to a halt if the expropriation plan flies because of investor flight that risks pulling out critical funding needed for chemicals and equipment for the capital intensive mining sector.

Gold mines, starved of foreign currency to buy imports, are already struggling with supplies such as cyanide to process gold and explosives and equipment. The new plan could be the death knell for a sector, whose output at one time totalled 30 metric tons a year, earning Zimbabwe $240 million. A miner who declined to be named said the policy threatens collapse of the mining sector which is capital intensive “once and for all”.

“A whole economy can be destroyed as a result of action taken by government for the supposed benefit, to free and uplift the deprived. Do we have the money to run the big mines, no doubt the expertise is there? Government needs to create a climate for the world to seek benefit in investment that has stability, harnessed to democratic values and principals. We need to build a proud nation that has tolerance and respect of each other’s investment. This is a destructive path,” he said.