Diamond and platinum miners lobby for the scrapping of 51-49 percent law

Spread This News

THE Chamber of Mines of Zimbabwe says it is engaging government with a view to pushing for the scraping of the 51-49 percent shareholding structure in the Platinum and Diamond sector.

Upon seizing power late last year, President Emmerson Mnangagwa amended the controversial Indigenisation Act which forced foreign owned businesses to cede 51 percent of their shares to Zimbabweans.

The requirement was removed in all the economic sectors except for Platinum and Diamonds.

Addressing journalists in Harare, last week, the chamber president Batirai Manhando said they were engaging government to scrap off the requirement in the extractive sector as it had the potential to scare off investors.

“We are engaging the government, our view is that these (Platinum and Diamond) are capital intensive industries and by their nature require lots of money and for us to leave platinum and diamond on the 51-49 percent we think it should be revised in line with other metals,” said Manhando.

Manhando said the extractive sector must be opened up to allow for more capital injection.

President Mnangagwa told Chinese investors during his recent visit to the Asian country that government is working on a new diamond and platinum mining policy to replace the 51-49 percent requirement.

Platinum and Diamond include gold and Chrome are some of the country`s top performing minerals which have brought in the elusive foreign currency.