Zimbabwe to transfer shareholdings of foreign miners

The Government of Zimbabwe has published a draft bill that will compel mining companies operating in the country to transfer majority shareholdings to local owners.

The Mines and Minerals amendment bill is expected to be before the Zimbabwean parliament before the end of the year.

It follows the passing of a general bill awarding a 51% share in foreign-owned firms to black Zimbabweans.

However, the general bill, which was passed in September, did not include a provision for a 25% government shareholding, as does the current bill for the mining sector.

Impala Platinum, the world’s second largest platinum producer, is the leading foreign mining firm in the country.

Anglo Platinum, the world’s largest primary producer of platinum group metals, is currently developing a mine project in the country. It is situated near Gweru, on Zimbabwe’s Great Dyke.

Rio Tinto also has a presence in the country through its diamond mining operations.

This latest move by President Robert Mugabe’s government is likely to further discourage foreign investment in Zimbabwe and worsen the country’s economic crisis.

Inflation in the southern African state is the highest in the world, at nearly 8,000%.