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(MnG) Miners offer compromise on Zim equity rules

COMMENT - Mining companies offer 'social responsibility' instead of paying taxes. What else is new.

Miners offer compromise on Zim equity rules
HARARE, ZIMBABWE - Apr 08 2011 17:12

Zimbabwe's mining industry proposed on Friday that "social investments" count towards meeting new regulations that require foreign miners to sell majority stakes to locals within six months.

Under new rules imposed last week, foreign mining firms must sell 51% stakes to black Zimbabweans by September 25.

The Zimbabwe Chamber of Mines said it believes that investments in social projects such as roads, schools and clinics should count toward the equity requirement.

"The chamber's own proposals to government had been for a minimum indigenisation quota of 26% equity, with the balance of 25% made up of credits arising from corporate social investments," it said in a statement.

Such investments could include support to small miners, buying supplies locally, training workers and launching new businesses, it added.

"The concept of indigenisation and economic empowerment is accepted and supported by the industry," the chamber said.

"The industry believes it should be done in a way that will achieve the twin paramount objectives of growth and development of the industry and the Zimbabwe economy and broad-based economic empowerment."

The new law is strongly supported by veteran President Robert Mugabe but has created tensions within the unity government, with Prime Minister Morgan Tsvangirai charging that it will discourage investment.

Foreign mines operating in the country include London-listed Aquarius Platinum and Australian-listed Zimbabwe Platinum Mines. -- Sapa-AFP

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), TAX EVASION, TAXATION

posted by MrK @ 1:27 PM