Zimbabwe is aiming for 50 percent ownership of its mines by its black population, according to a top businessman who discussed the issue with mining ministry officials.

 

Chamber of Mines president Ian Saunders held a meeting with government officials in an attempt to find more details after a statement by President Robert Mugabe that the state wanted to take control of the mining sector, which at present is dominated by foreign miners.

 

‘We sought clarity on the president's statement and we were told that although 50 percent was not a definite number, the government and President Mugabe want to see the industry moving to that number,” Saunders said in the Business Report.

 

In March, Zimbabwe withdrew a controversial draft law compelling mining companies to sell up to 49 percent of their shares to black Zimbabweans. The draft legislation, which also proposed that blacks should hold up to 25 percent of the shares of publicly traded mining companies, was suspended by the new Minister of Mines Amos Midzi.

 

Saunders told ministry officials that the demand for high levels of local ownership were likely to deter foreign investment and suggested 25 percent ownership within 10 years was a more realistic target.

 

"There are six projects that are at an advanced stage but these have been put on hold as the investors are seeking clarification from the authorities," Saunders said.

 

He declined to name the projects, but South Africa's Impala Platinum Holdings (Implats), the world's second-biggest producer of the white metal, has targeted Zimbabwe as a major expansion prospect.

 

Zimbabwe accounts for over 60 percent of Implats' reserves and resources. The firm plans to increase platinum output in the country to 145,000 ounces a year by 2006 from about 85,000 ounces now.

 

The world's biggest platinum company, Anglo American Platinum, also has an interest in the country, with its planned development of the Unki project.

 

Mining giant Rio Tinto is another major foreign investor, and recently swapped its holding in miner Rio Tinto Zimbabwe to boost its ownership in its jointly owned Murowa diamond mine in southern Zimbabwe to 78 percent.

 

Saunders declined to say what levels of ownership the government was proposing in the revised draft.

 

The chamber is proposing starting at 15 percent local ownership, moving to 20 percent in five years and 25 percent in 10 years

 

"Mines are huge consumers of foreign currency, which our locals do not have and this is why we think this timetable is appropriate," he said.

 

Zimbabwe is following in the footsteps of similar initiatives proposed by the South African government, which seeks to redress the effects of apartheid by requiring firms to sell 15 percent of their local assets to black investors within five years and 26 percent within 10 years.

 

International and domestic investors are rushing for new concessions in Zimbabwe while others are renewing prospecting licenses for platinum, gold, diamonds and other minerals due to the rise in global commodity prices.

 

The strengthening of interest in Zimbabwe, known for its rich mineral resources, is in line with a worldwide rise in interest in exploration as prices of precious stones and metals increase.