The government on Monday published a draft bill that will give them the power to grab a 25 percent shareholding in mining firms, without paying a cent. This new bill is an addition to the general Indigenisation and Empowerment Bill passed in September this year, which provided for a 51 percent stake in foreign owned firms for locals.Companies who will bear the brunt of the takeovers include the world's second biggest platinum producer, Impala Platinum (Implats). Anglo Platinum, the world's largest primary producer of platinum is currently developing a mine project near Gweru on the Great Dyke and will also be affected, as will diamond producer Rio Tinto. South Africa's Implats, who are the leading foreign owned firm, insist their structure already conforms to the requirements of the new bill. Their Chief Executive Officer David Brown told Reuter's news agency that they have not yet seen the, 'latest documentation,' and cannot comment until they have seen it.
| And then they'll be too busy setting charges in the mines to have any comment ... |
Businessman Mutumwa Mawere who lost his Shabani Mashaba Mines (SMM) to a government company-grab, said the new bill was strange given that, '100 percent of all mineral exports are controlled by the same state so why take a shareholding when in fact you control access to earnings of all minerals?' Zimbabwe is reported to have 22 mining companies with 10 of them in the hands of foreigners.
According to the Reserve Bank, 42 percent of the country's foreign currency earnings come from the mining sector where diamonds, platinum, chrome, palladium and gold are produced. Any disruption of this sector will have catastrophic effects for the country, as happened with the violent farm invasions that disrupted and destroyed the entire agriculture sector.
| Worked so well the last time let's just do it again ... |