(HERALD) Claim stakes in big mines: Kasukuwere

Claim stakes in big mines: Kasukuwere
Business Reporter

Government is moving at full speed to implement the Indigenisation and Economic Empowerment Act with calls for locals to claim stakes in big mines that are wholly owned by foreign investors.

Addressing senior officers of the uniformed forces attending Joint and Staff course number 23 at the Zimbabwe Staff College in Harare yesterday, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said local people should have shares in big mines like Murowa Diamonds which he said is entirely owned by Australians.

He said Government was irked by much talk about the mining of diamonds at Chiadzwa by Mbada Holdings when the exploitation was for the public benefit yet other firms were mining without contributing anything to the country’s economy.

Mbada Holdings is a joint venture company between Government and South African investors.

"We want local participation in all sectors of the economy and in the mining sector we are saying our people should have a stake in companies like Murowa Diamonds which is 100 percent owned by Australia.

"Every day tonnes of diamonds are being ferried to South Africa with Government getting nothing and there is continued talk about Mbada.

"As for Mbada, we know that the diamonds will be auctioned and that way we will be able to raise funds to pay our civil servants, but Murowa is milking our resources daily without contributing to the country’s economy.

"It is better for us to close such mines if the foreign investors are not prepared to partner locals," said Minister Kasukuwere.

He said Government would not let the economic imbalances continue unchecked when the majority of Zimbabweans were living in extreme poverty.

Minister Kasukuwere said the country had scored notable achievements in addressing the issue of land ownership but little had been done in the economic sector.

He dismissed proposals by the Chamber of Mines that locals should get a 10 percent stake in foreign-owned mines as unguided and futile.

"The proposals by the Chamber of Mines is not serious because they have to understand that in this case we mean business.

"We need to protect our national interests and we want our people to be empowered in all sectors of the economy," said Minister Kasukuwere.

He said the indigenisation and empowerment process was a fulfilment of the goals of those who fought for the liberation of the country.

The minister said the process was not only about ownership, but also about determination of where Zimbabweans want the economy to go.

"Through this process, we are saying we have to decide our destiny as a nation without any outside influence," he said.

The indigenisation of the economy is in line with the recently gazetted regulations under the Indigenisation and Economic Empower-ment Act, which stipulates that locals should own 51 percent of shares in all companies with a share capital value of US$500 000 and above.

The companies were given a deadline of April 15 to make submissions to Government on how they intend to regularise their businesses in line with the regulations.