AFP reported that mining multinational RioTinto's Zimbabwean subsidiary Murowa Diamonds has ceded 51% of its equity to comply with a new law giving local blacks majority shares in foreign companies.

Mr Saviour Kasukuwere Indigenisation minister said that "Murowa Diamonds wrote to us yesterday saying they have given up 51% shares and these would be given to our people."

Zimbabwe gave foreign companies including banks and mines up to September 25th 2011 to submit plans to sell 51% of their shares to the black community by 2015.

An official in the indigenization ministry said around 700 companies had missed the deadline warning them to follow the law or risk de registration. But Zimbabwe has also proved willing to strike individual deals with companies, giving platinum mining giant Zimplats more time to submit its proposal and allowing British insurer Old Mutual to conduct a first phase of compliance by handing over 25% of its shares.

Mr Robert Mugabe long ruling president said that the indigenization law aims to fight poverty and put control of the economy in local hands but the scheme has raised tensions within the shaky unity government with Prime Minister Mr Morgan Tsvangirai.

(Sourced from AFP)