Maravi

(STICKY) (NEWZIMBABWE) Biti raises spectre of nationalisating mines

COMMENT - Well right on. As for Eric Blochhead: " Governments are not capable of running businesses. Look at parastatals the world over, including Zimbabwe. The private sector is the one which has the skills." Tell that to the Chinese, the Taiwanese, and the South Koreans and the Japanese. All their economies were built by state owned and/or supported companies, like the Keiretsu and Chaebol. This is no time for a theological adherence to 'free trade'. What a fool.

Biti raises spectre of nationalisating mines
by Staff Reporter
28/07/2010 00:00:00

FINANCE Minister Tendai Biti has fallen short of calling for the nationalisation of mines, saying that Zimbabwe’s diamonds, gold and platinum are “benefiting outsiders”.

Frustrated by over a year of unsuccessful soliciting for western donor financial aid to keep Zimbabwe’s economy afloat, Biti now says the country must look within for solutions – and he has set his sights on the country’s billion dollar mining industry.

“Last year, we only got US$44 million from the mining industry yet they exported over a US$1 billion. This year, they have exported about US$650 million worth of minerals but we have only gotten US$15 million,” Biti told the Senate last week.

The Finance Minister said at the very least, the system where the country gets royalties from foreign mining firms needed to be reviewed.

“Zimbabwe is endowed with serious mining resources, but these are just benefiting outsiders, the multi-nationals that own these mines,” Biti added. “If you take the Zimbabwe Platinum Mine, the biggest mine in Zimbabwe, it is owned by Impala, a South African company.

“If you talk about our gold sector, again the major dominant players are South Africans. We are not benefiting. The mining model we have in this country where the government just depends on tax and royalties is not good enough.

“This is why for Chiadzwa we have said only the State should mine diamonds there. If we continue to give concessions to makoronyera (dealers), it is a disaster for this country, let us have the State to mine diamonds.”

Biti’s toughening stance on the mining industry will concern foreign investors already fearful of Zimbabwe’s new empowerment laws which will force them to sell off majority shareholding to locals.

Biti revealed in his budget review speech two weeks ago that projected foreign donor aid had not been forthcoming, and placed diamonds firmly at the heart of the country’s recovery efforts.

Economist Eric Bloch told the Financial Gazette last week: “Diamond mining must be done by the private sector with proper controls in line with KP (Kimberley Process) requirements.

“Governments are not capable of running businesses. Look at parastatals the world over, including Zimbabwe. The private sector is the one which has the skills.”

Labels: IMPALA PLATINUM, MINING, NATIONALISATION, TENDAI BITI, ZIMBABWE PLATINUM MINE

posted by MrK @ 4:21 AM