-->SA giants set to oppose Harare’s mine-grab bid
Charlotte Mathewsand Dumisani Muleya

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MAJOR South African mining groups with operations in Zimbabwe are expected to raise strong opposition to the Zimbabwean government’s plans to take a majority stake in mining operations, almost half of which it would not pay for.

The value of Zimbabwe’s mining sector is estimated to be at least US$20bn. The country has the second-largest resources of platinum in the world after SA.

Analysts say the plan, reminiscent of Zimbabwe’s chaotic land seizures, would destroy mining, one of the last few remaining working sectors of the economy.

They warned the move could inflict further irreparable damage to the mining sector, which was already reeling from the effects of the prevailing economic crisis.

Independent consultant John Robertson said the new legislation amounted to “economic sabotage” against an already collapsing economy.

He said it would keep new investors at bay and hurt those already in, while reducing prospects of economic recovery.

According to media reports in Zimbabwe and local sources, Zimbabwean Minister of Mines Amos Midzi told the Zimbabwe Chamber of Mines last week that the cabinet had approved draft proposals to require mining companies to surrender 51% of their assets to the government and/or indigenous groups, depending on the commodity. The government would pay only for 26% and the remainder would be a “free carry”.

Midzi said alternative foreign investors had been identified to take up the equities in current mines if external shareholders did not co-operate.


Implats finance director David Brown said these were draft proposals, not final legislation. Implats and subsidiary Zimplats would meet various Zimbabwean government ministries this week with their responses.

“We believe the proposal is not in the best interest of developing a platinum industry in Zimbabwe, and we believe the percentage figures and ownership methodology are not consistent with previous discussions,” he said. Asked whether the Zimbabwe government’s latest proposals would cause Zimplats to freeze a previously reported $2bn expansion programme, Brown said it would be premature to discuss such a move because Implats did not believe the outcome would necessarily follow the proposals.

Aquarius Platinum CEO Stuart Murray said the group’s joint-venture, Mimosa platinum mine, was in the midst of a $14m expansion programme, and Aquarius had no intention of halting that expansion.

Metallon Group head of corporate affairs Nonkqubela Maliza said Metallon did not believe the proposals would go through in their current form. If they did, it would be disastrous for Zimbabwe’s economy. However, Metallon Gold had already allocated 30% of its assets for indigenous partners, and was in negotiations with potential partners, Maliza said.

Metallon Gold owns five mines in Zimbabwe and two exploration projects. It is the country’s biggest gold miner.


Webber Wentzel Bowens senior associate Kevin Williams said the Zimbabwean government’s proposed requirement of a free-carry was fairly common in other countries, including Mali, Namibia, Botswana and the Democratic Republic of Congo.


Mugabe wird immer 'unappetitlicher', mit diesem Schritt läutet er
definitiv sein Ende ein, weil gewisse Gesetzmässigkeiten nicht überschritten
werden sollten.
HMY und GFI bezahlen gute Put-Prämien bei 10 - 15 % tieferen Einstandskursen.
Abwickeln so lange die bad news in den Medien herumgeistern!

Emerald.