Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Zimbabwe, whose government in January hiked exploration fees by up to 8,000% in a bid to curb speculative holding of mining titles, is ordering over 100 exploration companies to resubmit applications.
“On Monday, the ministry said in a public notice it now wanted 109 companies, including the largest gold miner Metallon Gold, the local operation of South African miner Metallon Corporation, and individuals to make fresh applications.”
The government also said a “significant number of mining claims” were surrendered to the Mining Ministry under the “Use It or Lose it Policy,” implemented last year to discourage ownership of multiple claims and speculation.
None of the major mining players in Zimbabwe were affected by the directive to resubmit applications, The Zimbabwe Mail said, referring to Rio Tinto, Anglo American Platinum and Impala Platinum.
Still, the measure will probably do little to reassure foreign mining companies operating in Zimbabwe.
Earlier this month Zimbabwe’s Black Empowerment Minister, Saviour Kasukuwere, announced the country has taken majority ownership of foreign-owned mining firms, which had not already given a controlling stake to black Zimbabweans.
Johannesburg-listed Impala Platinum, the world’s second-biggest platinum producer, bowed to pressure last month to surrender half its Zimplats unit.
