Six Zim Mines Respond To Controversial Indigenisation Proposals
03/05/2011 17:05:00
Harare, May 03, 2011 – At least six mining companies have told the Minister
of Indigenisation and Employment Creation their indigenisation plans as they
gear towards “change”, Saviour Kasukuwere, has confirmed.
In an interview with Radio VOP, Kasukuwere, clad in a cap and T-shirt in his
office, said he was, however, very unhappy that some of proposals had the
“same names appearing maybe being used by Westerners to act as fronts in the
vetting process”.
He said: “I can confirm that at least six mining firms have told us what
they intend to do as far as indigenisation is concerned. I am, however,
unhappy that we tend to see the same names appearing in their pitch letters
which is worrying”.
President Robert Mugabe has regularly scolded local business entrepreneurs
accusing them of being used by Whites especially the British and the
Americans, saying Zimbabweans could be re-colonised.
While the minister did not reveal the names of the concerned mining
entities, it is reliably understood that mining giants Rio Tinto Zimbabwe
Limited (Rio Zim), Freda Rebecca Mine, Unki Mine and Zimplats (Private)
Limited have confirmed and dished out their proposals to Minister
Kasukuwere.
Rio Zim currently has a market capitalisation of US$53,923,626.00 on the
Zimbabwe Stock Exchange (ZSE).
Its share price stands at US$1,38. Rio is the second most heavily
capitalised mining concern on the bourse after Hwange Colliery Company
Limited (WCCL) whose market cap stands at a huge US$140,536,616.16.
However, WCCL faces numerous financial problems and dwindling international
markets and prices for its products. The mining giant is mainly
government-controlled by a huge shareholding, and is currently led by
tycoon, Tendai Savanhu, a Zanu (PF) functionary.
The Minister of Mines, Obert Mpofu, in an interview, said the mining
industry was “picking up” from about two years ago when many mines were
closed resulting in workers being sent home.
Investors have questioned the new indigenisation regulations in the mining
sector asking why they should continue putting their money on mines while
not being allowed to take dividends back to their investors in the West.
Kasukuwere urged mining houses to come clean and reveal their proposals
otherwise government would be forced to “take over the mines because they
belong to Zimbabweans”.