adminMinister Tapiwa Mashakada has said.
Speaking at a mining conference in Perth, Australia, recently, he said the sector had “immense opportunities” for investment in mineral commodities such as gold, base metals, industrial minerals, coal, diamonds and coal-bed methane.
Zimbabwe also has the world’s second-largest platinum deposits.
The mining sector is projected to grow by 44 percent this year and anchor the country’s forecast 9,3 percent economic growth despite funding problems.
The minister noted that mining companies were encouraged to either resuscitate existing mines, or undertake prospecting and exploration for new mineral resources.
There also existed quarrying
and beneficiation opportunities, he said.
Minister Mashakada tried to allay fears about expropriation and nationalisation in Zimbabwe, which requires foreign miners to transfer 51 percent equity stakes to local black investors.
“Basically it says that foreign investors are encouraged to seek a local partner from Zimbabwe and the local partner will have to seed for the value of 51 percent.
“That means if the local partner can’t raise 51 percent of the capital cost for the project under the terms of the shareholding, there is no deal.”
Minister Mashakada admitted that major mining companies, looking to invest in large resource projects, would be unlikely to secure a local partner to readily take up a 51 percent stake in high-priced projects, which require huge capital.
“The 51 percent stake will not be expropriated or nationalised, but taken up from value and companies will need to look for a local matching partner.”
The minister said that the law provided flexibility and allowed for a negotiation period in order for mining companies interested in investing in Zimbabwe to find an appropriate joint venture partner.
For instance, the Government has allowed Indian firm Essar Global to acquire a 54 percent stake to revive the troubled Ziscosteel now NewZim Steel. The deal will result in a US$750 million investment in the dormant firm.
Online Reporter