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.
A Zimbabwe government official says a law forcing foreign companies to surrender 51 percent stakes to local people was “an aspiration,” not a hard target, Reuters is reporting:
“This is a negotiated process, it is not an issue that is dictated to companies. It is more to deal with evaluating and negotiating with each company,” Prince Mupazviriho, the permanent secretary in the mines ministry, said during a mining conference on Thursday.
The new position by the government is a change from the previous hard-line edict suggesting the 51% requirement was set in stone.
CNBC reported last week that Zimbabwe could prosecute or cancel the mining licence of Zimplats, the local unit of Impala Platinum, for failing to agree to transfer majority ownership to local blacks, piling pressure on the firm to strike a deal.
However, on Tuesday Zimplats was given an extension to come up with an acceptable plan by November 15.
Zimbabwe gave foreign companies including miners and banks a 14-day ultimatum to submit plans on how they propose to transfer majority stakes to local owners or risk losing permits, MINING.com reported in August.
2 Comments
Mike321
call him what you want but that man has balls. you can not strip a country of its wealth so that you can have a highstand of life in the west and the poor zimbabwens can not feed themselfs if l was him l would take 80%
Catinafrica
What a clown this Magabe is, is there no end in site for this country