(NEWZIMBABWE) Leading miners staying put
Leading miners staying put27/06/2011 00:00:00
by Business Reporter
LEADING miners such as Anglo American Corporation and Rio Tinto have applied for clearance to continue operating in the country putting paid to fears controversial empowerment laws could drive foreign investors out.
A statement published by the indigenisation and economic empowerment ministry stated that some 173 companies had applied for mining business clearances among them RioZim which runs the Murowa Diamond Mine jointly with global resources group Rio Tinto.
The list also includes Anglo American Corporation which is developing the country’s third largest platinum mine, Unki in Shurugwi, Mimosa platinum mine and Mwana Africa subsidiaries, Bindura Nickel Corporation and Freda Rebecca gold mine.
Foreign mining firms are now required by law to localise control of at least 51 percent of their shareholding as part of efforts by government to give indigenous Zimbabweans control of the country’s economy.
Critics have warned that the law could force companies to leave the country or undermine further investment thereby hurting the country’s economic recovery.
However, most of the key mining houses have submitted plans to comply with the regulations.
Meanwhile the list published empowerment ministry included several Chinese firms as the emerging global economic superpower looks for a foot-hold on the country’s rich mineral resourses.
China is now Zimbabwe’s second biggest trading partner after South Africa and Chinese companies on the list included, Anjin of Chiadzwa, China-Zim International Corporation, Hong Ji Mineral development (Private) Limited and Chinajin Baki Mining (Private) Limited.
The mining sector has been a key driver of the country’s economic recovery buoyed by the current global commodities rally and positive policy measures by the coalition government.
"Favourable international commodity prices have improved the viability of mining concerns and resulted in the rejuvenation of operations, particularly in the platinum and gold sub-sectors,” the African Development Bank (ADB) said in recent review of the country’s economy.
“Against this background mineral output increased for gold (16.4 percent), diamonds (9.3 percent), platinum (8.6 percent), and chrome ore (6.5 percent) among others. Gold deliveries by both primary and small-scale producers amounted to 4116.2 kg over the period January to May, 2011."
The sector however needs at least US$6 billion to return to full viability and the ADB warned that the country’s empowerment laws had increased "uncertainty and adversely affected the confidence of international investors”.
Labels: ANGLO-AMERICAN, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), RIO TINTO
posted by MrK @ 2:23 PM
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