Maravi

(HERALD) Govt set to review mining contracts

Govt set to review mining contracts
Herald Reporter

GOVERNMENT is considering reviewing mining contracts as some companies are sitting on claims for speculative purposes at a time when the country is looking for serious investors, Mines and Mining Development Minister Obert Mpofu has said.

Minister Mpofu told investors at the just-ended 5th Annual Mining in Africa Conference in Johannesburg, South Africa, that Government was contemplating taking measures such as the "use-it-or-lose-it policy".

"We are contemplating introducing that kind of measure to deal with those that have been sitting on a lot of claims for a long-time," Minister Mpofu said. He said such behaviour derailed foreign direct investment.

"Investors come but are unable to invest because somebody is sitting on claims in most of the important minerals," he said.

"It is a serious issue that we are addressing. We are working on a mechanism on how best to address this." Minister Mpofu also cleared the air on Government’s indigenisation policy, saying this should not discourage investment.

"We are sensitive to regional experiences regarding indigenisation. We will be guided by what is feasible," he said.

Labels: MINING, MINING CONTRACTS, OBERT MPOFU

posted by MrK @ 1:06 PM