adminOliver Kazunga Senior Business Reporter
THE Securities and Exchange Commission of Zimbabwe (SECZ) says adequate disclosure is the best practice approach for mining companies to facilitate efficient and transparent investment in the country.
Zimbabwe’s mining industry contributes about 17 percent to the Gross Domestic Product but of late the sector has been secretive in its operations with limited or no disclosures being made on revenue and production, said the commission.
SECZ chief executive officer Mr Tafadzwa Chinamo told Business Chronicle that investors can be protected if they are fully informed.
“Companies just don’t collapse. It takes a series of events, which if properly disclosed, investors can intervene to save the company.
“Disclosure is important as emphasis is on availing reliable, timely, equitable and material information to the investing public,” he said.
“The information needs to be readily accessible, comprehensive and distributed in an equitable manner to enable investors to make informed decisions. Adequate disclosure enhances investor protection, facilitates efficient and transparent investment practices.”
Mr Chinamo said for listed entities, SECZ emphasises on disclosure of results of any audits or reviews of minerals resource estimates.
The disclosure, he said, among others includes a description of the geological model used to assure continuity of mineralisation and the provision of adequate database for the estimation procedure used.
At the moment, the Zimbabwe Stock Exchange only has four listed counters on the mining index despite the country hosting some of the world’s largest mining conglomerates such as Implats.
The only listed mining houses in Zimbabwe are Bindura Nickel Corporation, Hwange Colliery Company, Falgold and RioZim.
Early this year, the Government closed down seven diamond mining firms in Manicaland following their resistance to consolidate under the Zimbabwe Diamond Consolidated Company.
The Government has said the country’s diamonds sector was being consolidated to promote accountability and transparency in the industry.
Online Reporter