Anglo America mining rights revoked

Anglo America mining rights revoked

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By Agencies

ZIMBABWE has revoked 13 exclusive mining prospecting rights for three companies, including giants Rio Tinto and Anglo American, the government has announced.

According to the latest weekly government gazette, the cancelled rights had been granted between two and three years ago.

Although the gazette does not give details, the move comes just weeks after the central bank governor Gideon Gono urged the government to take action against under-utilised mining rights and claims.

In a monetary policy statement last month Gono said that "the country continues to perform under capacity in mining as a result of under-utilisation of some mining rights where potential investors keep mining claims for years without tangible operational plans".

Anglo American lost seven prospecting orders while Rio Tinto lost four. The remaining two were owned by a company called Krumlin.

Most mining giants in Zimbabwe have interests in gold, copper, nickel, asbestos, platinum, chrome and iron ore.

Last month state media reported that the government had repossessed 1 261 mining claims "to make way for serious investors".

Doug Verden, a senior executive with the Chamber of Mines of Zimbabwe said there was nothing untoward about the government's move.

He said companies that hold an exclusive prospecting order are supposed to do something with it within a certain period of time, after which it reverts to the government.

"It's within the spirit and the letter of the law. I don't think we have any particular problem with that," he said.

Mineral production has sagged in recent years due to rising production costs, high labour costs and unfavourable government policies especially in regard to the foreign exchange rate for exporters.

A proposed amendment to the country's minerals laws is due to be tabled in parliament soon, which envisages giving "historically disadvantaged persons" a 49% stake in foreign and privately-owned mines.

Gold, which accounts for slightly over 50% of Zimbabwe's mineral exports, is one of the country's major foreign exchange earners.

A few years ago Zimbabwe had become the third largest gold producer in Africa after Ghana and South Africa.

The mining industry employs about 60 000 people. - Sapa
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