Zimbabwe will amend its mining laws to allow the government to demand a 51% share in some foreign-owned mines, an official announced on Friday. "The government wants to be an active participant in the mining business ... In effect I am saying the principles to the Amendments of the Mines and Minerals Act have been presented and approved by Cabinet," Mining Minister Amos Midzi told reporters in Harare.The amendments will be tabled before Parliament for final approval before July, Midzi added. He said this would allow the government to hold a 51% shareholding in each of the foreign-owned mines in the energy mining sector, which includes minerals such as coal, uranium and methane gas. The government would initially take up a 25% share which would gradually be increased to 51% over a period of five years, Midzi said. "The modalities of achieving the 51% shall be: 25% non-contributory immediately after promulgation of the Act. The balance shall be achieved within five years." The same would apply to platinum, diamond and gold mines.
Zimbabwe's mining sector has seen the closure of at least 13 mines in the past six years, according to the Chamber of Mines, an organisation representing mining firms. The sector has been hard-hit by an acute shortage of spare parts fuelled by a foreign exchange crunch, spiralling inflation, a free-falling currency, erratic power supplies and higher production costs.
Zimbabwe has seen its mining sector stagnate after President Robert Mugabe last year warned that the government would demand a 50% stake in all mines. The mining sector last year earned $626-million, representing 44% of Zimbabwe's total foreign currency revenues, according to Reserve Bank figures.
Remember Bob's motto: "If you can't steal it or f*ck it, piss on it."