Mugabe gives nod to mine-grab proposal

Mugabe gives nod to mine-grab proposal

• Zimbabwe doubles gold prices

• Foreigners key to Zim mine growth - chamber

• Political patronage threatens Zim mines

• Zim clarifies Mugabe mine-grab policy

• Mugabe wants 50pc shares in mines

• Anglo America mining rights revoked

• Mugabe gives 49pc mining rights to blacks

• Mnangagwa in dirty gold scam

By MacDonald Dzirutwe

HARARE (Reuters) - ZIMBABWEAN President Robert Mugabe on Tuesday reiterated that his government was seeking control of 51 percent of foreign-owned mines, backing a proposal which has fanned fears among foreign investors.

"We said we want 51 percent in favour of Zimbabwe and 49 in favour of the investors," Mugabe told a rally marking Zimbabwe's 26th anniversary of independence from Britain.

"The depleting resources, non-renewable resources, are ours in the first place. You, the investor, will get a reward, yes, but that reward should be balanced by what we keep for ourselves," Mugabe said.

Zimbabwe's Mines Ministry said last month that cabinet had approved draft amendments to the mining law aimed at giving the government control over foreign-owned mines, one of the few remaining bright spots in an economy mired in a six-year recession.

Mining has become Zimbabwe's top foreign currency earner following the collapse of the country's agricultural sector, which critics blame on Mugabe's move to seize white-owned farms to give to landless blacks.

Mugabe earlier this month dismissed concern over the mines proposal, saying it was still under discussion by various departments in government.

The Mines Ministry statement to the Chamber of Mines, an industry group, said the amended law would give the government 51 percent in "energy minerals mining companies", including 25 percent on a "non-contributory basis," upon promulgation.

Industry officials say a non-contributory basis means the government would acquire shares without paying for them.

The proposals were a fresh blow to an industry already facing erratic power supplies and mine closures as operating costs spiralled over the last five years.

Last month a senior official from the world's second largest platinum producer Implats met Mugabe over the proposals. Zimbabwe, with the second largest platinum deposits after South Africa, is the main area for Implats future growth.

Other companies with mining interests in Zimbabwe include the world's biggest platinum producer Anglo Platinum Ltd and mining giant Rio Tinto Plc - Reuters
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