‘It’s time to review mining contracts’

University of Technology.
He said the reviewing of the contracts should be complemented by enabling laws, statutes and instruments. The current laws and deals, he said, favoured foreign investors more than locals and the interests of the country.
“It has to be admitted that we have been poor negotiators when it comes to our natural resources, especially in mining where licences and permits have been issued without looking at the true value of the minerals involved based on research,” said DPM Mutambara.
He cited the example of Zimplats where at least US$4 billion worth of platinum reserves are held by foreigners and the Essar deal where the investor stood to brood on reserves of around  US$20 billion.
DPM Mutambara said there was also need to re-look at the deals at Chiadzwa to establish the value and benefit the country stands to get from diamonds.
He said Government was reviewing the Essar deal to ensure a win-win situation for both the investor and the country.
The revolutionary transformation should also see the introduction of financial sector laws that compel all major mining conglomerates to primarily list on the local stock exchange while banking locally, said DPM Mutambara.
The reforms should also compel banks to keep deposits locally and extend loans to agriculture and indigenised mines. The DPM’s topic for the lecture was: “Africa Day; 49 years of Civil Wars, Coups, Poverty and Disease; Which way Africa”.
He said there was need for a paradigm shift from political pursuit coated with civil rights to “silver” rights which espouse empowerment of the African people.
Africa, DPM Mutambara said, should embrace technology and create an environment for innovation and technological development by its people within and outside the continent.
“There is need for us as a continent to encourage entrepreneurship so that our people are not just content to seek employment, but are creators of employment and are the breeding grounds of innovation that leads to improved livelihoods and sustainable growth for Africa,” he said.
DPM Mutambara said Zimbabwe, like other countries in Africa, should have a rallying point which transcends partisan considerations.
“The debate should not be selfish partisan interests, but we should have core values and interests that are shared by people whether they are in Mavambo, Zanu-PF, NDU, MDC A, B or C because there are so many of them,” he said.
CUT pro-vice chancellor Dr Pardon Kuipa said there was need for African intellectuals to confront poverty and come up with solutions.