The committee headed by MDC Bulawayo North East MP Welshman Ncube, a respected constitutional lawyer, passed a non-adverse report on the proposed bill.

The proposed legislation’s memorandum says: “Ultimately it is intended by this Bill to provide an enabling environment in which at least a 51% shareholding in the majority of businesses in all sectors of the economy is in the hands of indigenous people.”

It adds, “In order to ensure meaningful participation, the Bill also makes provision for the establishment of an Indigenisation and Empowerment Fund to provide finance for the indigenous people in the acquisition of shares, working capital and other forms of finance.”

At a hearing with parliamentary committees Monday, industry and notably the Zimbabwe Chamber of Mines and international banks opposed the law.

Mines Minister Amos Midzi recently told parliament that the Mines and Minerals Amendment Bill would become law before March next year.

Midzi added that international mining companies would be required to cede 51 percent of their shareholding to either locals or the government.

The legislation has evoked the spectre of Zimbabwe's seizure of thousands of white-owned farms early this decade, mostly without compensation, in what was then called a redistribution of land to poor blacks.

Instead, many of the best farms were awarded to leading figures in Mugabe's government and his ruling party, Zanu PF.

But the legislation sets out a more gradual transfer of ownership. One analyst quoted by The Associated Press said that it potentially could allow mixed-race citizens and even some whites to acquire stakes in companies.