AMN - Mugabe says mining must play greater role in Zimbabwe - comment by Yolanda Torrisi

Zimbabwe’s President Robert Mugabe is becoming impatient over the pace of mining reform and says that the industry needs to be reorganised so that it contributes more towards the country’s economy.

He did not provide details on how the transformation will take place but it is almost certain to include changes to black ownership measures. In recent years, the Mugabe government has pressured mining companies to transfer majority stakes to black ownership under a 2008 law and to cede some claims.

The government has signalled plans to relax ownership rules for existing mines, but has shifted focus to seizing land owned by foreign mines, which it claims to be idle.

Reuters reports that Mugabe told thousands attending a rally in a Harare stadium earlier this year to mark the country’s 37th independence anniversary, “There is a lot of work going on in that sector, not least the reorganisation whose completion we impatiently await.

“Much is expected from this important sector. It must play its part towards this overall development vision we have.”

Mining generates more than 50% of Zimbabwe’s export earnings. The landlocked country holds significant mineral deposits and the world’s leading platinum producers, Impala Platinum and Anglo American Platinum, have operations.

The industry has surpassed agriculture as leading employment provider after the Mugabe government started seizing white-owned farms in 2000 in order to resettle landless blacks.

Zimbabwe’s government has also pressured miners to invest in local refinery facilities with platinum miners currently shipping their matte to South Africa for processing.

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com