DARREN SCHUETTLER, Johannesburg | Thursday
MINING giant Anglo American Plc says fundamental changes are needed to reverse eroding investor confidence in Zimbabwe, where it has put a platinum project and new investments on hold.
Anglo Chief Executive Tony Trahar said he had confidence in Zimbabwe’s long-term future, but of prime concern was the country’s economic and political stability in the near term.
”Until such stability returns we are unwilling to make new commitments in Zimbabwe and major mining projects, such as the Unki Platinum project, are on hold pending such stability and the implementation of an acceptable fiscal regime for the industry,” Trahar said.
”All in all, it is clear that fundamental change is required in Zimbabwe.”
Zimbabwe’s mining industry is reeling from a severe hard currency shortage and soaring interest rates linked to the country’s worst economic and political crisis in two decades.
The country’s Chamber of Mines has warned that 90% of Zimbabwe’s gold mines were at risk and several mines have posted heavy financial losses and suspended operations.
”It is a sad reality that the sound infrastructure, economic stability and good legal framework which enabled the Zimbabwean mining industry to operate profitably in the past are now all under threat and investor confidence has been substantially eroded,” Trahar said.
Anglo’s interests in Zimbabwe include the $70m Unki platinum project with forecast annual output of 118000 ounces of platinum group metals and 2500 tonnes of nickel and copper.
Anglo also holds a majority stake in Bindura Nickel, which owns the Bindura nickel-copper smelter, refinery and mine.
Zimbabwe’s mining industry suffered a scare in June when President Robert Mugabe said his government was looking at seizing foreign-owned mines after completing the takeover of hundreds of white-owned farms for black resettlement.
Mugabe later clarified his remarks, saying he only wanted blacks to have a share in mine ownership.
Trahar said South Africa’s government and business community had failed to dispel what he called incorrect perceptions that Zimbabwe’s instability could spill into South Africa. – Reuters