Zimbabwe Suspends New Empowerment Mining Law
March 28, 04
Zimbabwe decided to not move forward with the introduction of new mining laws until it consults with the industry, the Ministry of Mines said Friday. The proposed laws will require, in the current form, that miners sell a 49 stake to black Zimbabweans.
The draft legislation, which also proposes 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 who took office just a few weeks ago.
The African country has the world's second-biggest reserves of platinum and chrome, gold deposits and diamonds.
According to a statement to the Australian Stock Exchange by Zimplats, an Australian company that owns a platinum mining operation in the country, the draft “was an internal paper prepared as a basis for discussions.
“As a consequence of the reaction to the draft paper becoming public, the ministry of mines has withdrawn the paper.”
The reaction to the draft was in fact so negative that one miner quit exploration altogether, says Ian Saunders, President of Zimbabwe’s Chamber of Mines.
“We hope there will be very significant changes made,” Saunders added.
The country is suffering from runaway inflation of over 600 percent, a record unemployment rate of 70 percent and a recession as President Mugabe has been seizing white-owned farms for handing over to blacks, often using violence and scare tactics.