September 07, 2008

Zimbabwe government seeks 25% stakes in mining firm

It is reported that Zimbabwe's government recently published a draft bill forcing mining firms to transfer majority shareholdings to local owners, including giving the Zimbabwe government a free 25% stake.

The mines and minerals amendment bill is expected to be presented to parliament and to be approved before the end of the year, and follows the passing of a general bill giving 51% stakes in foreign owned firms to locals.

Mr Douglas Verden CEO of Zimbabwe Chamber of Mines said that the industry body is still going through the bill, but that it did not look very helpful to the mining industry. He added that "It would appear that there is a freebie of 25% in energy supply materials miners and miners of precious metals and stones. They call the 25% a noncontributory takeover by government."

Mr Verden said that "We are busy looking at it at the chamber at this minute and then we'll be deciding on what action we'll be taking. He added that the chamber would likely come up with a plan of action in a few days. Maybe we should take some different type of action, I am not certain at this stage."