President Robert Mugabe said on Friday that foreign mining firms that invest in Zimbabwe would be allowed to retain majority stakes under controversial ownership regulations.
”Where we read that a company has invested its profits over the years, we will not demand majority shareholding but, of course, we will need some shares,” the state New Ziana news agency quoted Mugabe as saying during a meeting with Zimbabwean ambassadors.
The veteran leader commended the Zimbabwe Platinum Company (Zimplats) for building houses and roads, urging other companies to take a cue from the firm, whose majority shareholder is South Africa’s Implats.
The government plans to amend the Mines and Minerals Act by inserting a clause providing for compulsory state acquisition of 51% of all foreign-owned mining firms.
Under current laws, locals are entitled to a 15% stake in foreign-owned mining ventures, but there have been few takers.
The Chamber of Mines, representing 200 mining houses in Zimbabwe, warned last year that the proposed amendments would effectively kill off investment needed to keep the mines open.
Zimbabwe is in the throes of an economic crisis, with inflation at nearly 8 000%, and severe shortages of fuel and food.
In June last year during a tour of Zimplats, Mugabe stressed that the new ownership rules would not apply across the board.
New Ziana said Mugabe expressed concern that the mining sector was reporting a decline in production and consequently in foreign currency earnings and yet mining operations were continuing.
Mugabe also lashed out at some black managers of large manufacturing companies, accusing them of frustrating the government’s efforts to revive
the econony.
”Most of these firms are run by our brothers and sisters and they are arrogant,” he said
”We have created a middle class of people that look down on the people in government. It is sad,” he said. – Sapa-AFP