Government Rejects Local Equity Stakes Proposed by Mining Firms
07 July 2011
Parliamentary Legal Committee Chairman Shepherd Mushonga of the Movement for
Democratic Change said lawmakers will not let the ZANU-PF side of the unity
government start grabbing mining companies
Gibbs Dube | Washington
Zimbabwean Indigenization Minister Saviour Kasukuwere says Harare has
rejected equity quotas of up to 26 percent plus empowerment credits proposed
by foreign-owned mining companies responding to a call for plans to increase
stakes held by local investors.
Kasukuwere told the Zimbabwe Broadcasting Corporation that proposals
received from mining firms are unacceptable and Harare if not satisfied will
seize such assets.
He said Harare will not even discuss the proposal by mining firms to make up
the other 25 percent demanded by the government in so-called empowerment
credits taking the form of school and clinic construction and other
community projects.
Mining indigenization regulations say that foreign-owned mines should detail
plans to put a 51 percent stake in the hands of indigenous investors or
government entities.
Kasukuwere’s announcement has caused panic among mining executives. Sources
said a crisis meeting was called in Harare. Mining executives declined to
comment.
Parliamentary Legal Committee Chairman Shepherd Mushonga said lawmakers will
not allow the ZANU-PF side of the unity government to start grabbing mining
companies.
Economic commentator Masimba Kuchera said Kasukuwere’s threats are an
attempt to secure wrestle higher equity participation offers from mining
firms“because I don’t think that the inclusive government can allow [mine
seizures] to happen.”