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such as Anglo-American, Zimplats, Mimosa and diamond firms in Chiadzwa are among the foreign companies that obtained mining rights for peanuts.
DPM Mutambara said this in the House of Assembly while responding to a question from Kambuzuma legislator Mr Willas Madzimure on what the Government was doing to ensure the implementation of the deal reached with Indian firm Essar to revive the operations of Ziscosteel.
Mr Madzimure’s question follows reports that at least 3 000 workers at the company have not been paid in the past three months after Essar failed to commence operations because of an outstanding matter over the quantum of iron ore reserves it can access.
“The problem in this country is on the way we negotiate and our mining laws,” said DPM Mutambara
“Our mining laws are bad laws and it is the same in Guinea, South Africa and Ghana. They are a travesty of justice and we need to ensure that our laws benefit the people.
“During the signing of that deal (Essar) there was never a discussion of the ore owned by BIMCO and it is the same for Zimplats, Chiadzwa and Mimosa.”
Added DPM Mutambara: “Consequently an investor comes in, invests a few cents and walks away with resources valued at billions of dollars.”
He said under the ESSAR deal the company could get iron ore reserves valued in excess of US$30 billion yet their investment was around US$700 million.
Government, said DPM Mutambara, was, however, negotiating with the company to find an amicable way to resolve the issue.
“We are guilty as charged, we were deaf, dumb and blind and it is not the first time we have done that, we have done that with Anglo-American, Zimplats, Mimosa and Chiadzwa.
“We take responsibility that we did not do a good job and that we must do better in future,” he said.
DPM Mutambara said Government will in future hire independent consultants to assist them in negotiating contracts with foreign investors that benefit the country.
“We want to ensure that in every deal there is an independent advisor and that every deal must be made public on the internet, in various media and, of course, we must change the Mines and Minerals Act,” he said.
DPM Mutambara’s remarks come against the backdrop of the implementation of the indigenisation policy by Government to ensure that communities and the general workers benefit from their resources.
A number of employee and community share ownership schemes have been established as Government seeks to increase the involvement of Zimbabweans in the exploitation of their resources.
Online Reporter