adminGolden Sibanda Senior Business Reporter
GOVERNMENT will hold 33,33 percent of shares in the Minerals Exploration and Marketing Corporation at inception while the board of directors will decide how to deal with the balance of the shares. According to the Minerals Exploration and Marketing Corporation Amendment Bill, the State shall at all times hold at least 25 percent of shares in the corporation and the remainder may be held by mining companies and other individuals as the board may decide.
However, the Minister of Finance and Economic Development still has to approve allocation of the balance of shares after the State has received its share in the corporation being set up, mainly, to explore for minerals and market all minerals produced in Zimbabwe.
The authorised share capital of the corporation shall be thirty six million dollars or the equivalent in a currency that is legal tender divided into thirty six million dollars of one United States dollar each.
However, with approval from the minister responsible for finance, the board of directors may increase its authorised share capital, according to excerpts of the amendment Bill gazetted early this month.
“Twelve million of the corporation’s shares shall be allocated to the State, subject to such terms and conditions as may be determined with approval of the (mines) minister and the minister responsible for finance in consultation with the board,” the Bill says.
Further, “Subject to subsection 4, the remainder of the corporation’s shares may be issued in such circumstances and such terms and conditions as may be determined by the board with the approval of the (mines) minister and minister responsible for finance.”
The State will get shares in the corporation by way of payment to be made out of money’s appropriated for the specific purpose by Act of Parliament or for the value of any or all the shares to be set off against loans previously granted to the corporation by the State.
Government will also get shares in the corporation for all or any shares to be allotted or issued in consideration for capital grants previously made to the exploration and marketing corporation by the State.
The new law provides that the corporation may acquire ground on its own or in partnership with another person for prospecting and exploration activities subject to the provisions of the Mines and Minerals Act.
The Minister of Mines may instruct the corporation to do exploration for a particular mineral or in a specified reserved area.
Government decided to establish the Minerals Exploration and Marketing Corporation in order to fully explore and expose the country’s mineral resources for development since exploration is considered risky and expensive prior to commencement of mining activities.
Mining is a key pillar of the Zimbabwean economy, second after agriculture and accounting for 12 percent to 15 percent of the country’s gross domestic product, currently estimated at $14,2 billion.
In terms of other salient features, the Minerals Exploration and Marketing Corporation Bill outlaws stockpiling of minerals and the law empowers the corporation to fix the minimum quantity of minerals a person may own or have in possession or under their control and may order them to reduce the quantity to prescribed amount.
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