Maravi

(TALKZIMBAMBWE) State to form exploration company

State to form exploration company
by
28/12/2009 00:00:00

THE Government plans to form an exploration company as part of efforts to curtail the hording of mining claims and other speculative activities holding back development of the country’s rich natural resource base.

Zimbabwe boasts a relatively large underground mineral base but government is concerned that most of this wealth remains “inferred resources” due to the lack of extensive exploratory work.

“Government will (therefore) finalise and operationalise an exploration company to undertake prospecting in areas neglected by private investors.

“This will complement private mining exploration activity,” the Ministry of Finance says in its latest economic blue-print.

The country’s mining legislation will also be tightened to curb speculative tendencies and discourage the hording of Exclusive Prospecting Orders (EPOs) which has been holding back investment in the sector.

“(The legislation will enable) Government … to reclaim all undeveloped mining claims held by some of the country’s mining companies for speculative purposes as some mining houses are holding on to mineral claims with no plans to exploit them.

“Given that holding of claims by some mining houses for speculative purposes is detrimental to securing fresh investment in the sector, … Government will repossess all claims held for speculative purposes on a ‘use it’ or ‘lose it’ basis,” the new economic blue-print says.

The country’s once vibrant mining sector suffered near-terminal decline over the last decade with only Zimplats, Mimosa and Murowa Diamonds remaining reasonably operational while about a hundred other firms either closed shop or scaled back activities to care and maintenance.

However the sector is showing signs of tentative recovery as a result of positive policy measures introduced under the inclusive government’s Short Term Economic Recovery Programme (STERP).

Analysts say these measures which include the removal of forced foreign exchange surrender requirements and the full retention of export proceeds are expected to see the sector grow by 2% in 2009 and 40% in 2010 compared to a decline of 30% in 2008.

Labels: MINING, NEOCOLONIALISM, PARASTATALS, TENDAI BITI

posted by MrK @ 4:50 AM