Zimbabwe mines to be forced to sell equity
Publish date: 16 August 2005
Issue Number: 1399
Diary: Legalbrief Today
Zimbabwe is taking legislative steps to force foreign-owned mining houses most mines in the country are foreign-owned to cede 30% equity to local black investors in the next 10 years, says a Business Day report, noting the legislation will fuel uncertainty in the countrys troubled economy.
The report says analysts argue the move is a ploy by the forex-strapped government to retain some of the mining sectors profits. Draft regulations to be inserted into the Mines and Mineral Act through a statutory instrument show government is mulling over plans to reform the sector using SAs mining charter as a model. The amendment, yet to be tabled before parliament, says: In order to increase participation and ownership by historically disadvantaged persons in the mining industry, companies shall achieve 30% ownership of the industry assets in 10 years of which 20% shall be achieved in two years, 25% in seven years and 30% in 10 years from the date on which these regulations take effect. Full report in Business Day