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Mining Executives to Meet Zimbabwe's Indigenization Minister Over Equity Stakes

  • Gibbs Dube

The executives who declined to be named told VOA Studio 7 they expect to reverse Indigenization Minister Saviour Kasukuwere’s plans to appropriate their shares without due compensation

Executives of some mining firms in Zimbabwe whose 51 percent shares are being targeted by the Ministry of Indigenization under the country’s indigenization program say they are expecting to hold high level talks with state representatives next week.

The executives who declined to be named told VOA Studio 7 they expect to reverse Indigenization Minister Saviour Kasukuwere’s plans to appropriate their shares without due compensation.

They said it is still unclear whether Kasukuwere will enforce his proclamation which is not enforceable by any law in Zimbabwe.

Kasukuwere said Thursday all mining companies that have not yet transferred a 51 percent stake to indigenous people have ceded them to the Zimbabwe government.

Buletsi Nyathi of the Youth in Mining Council said affected firms should seek help from the ruling parties and Southern African Development Community. “This needs a political solution otherwise these mines will end up in the wrong hands,” said Nyathi.

Meanwhile, Zimbabwe says it will review proposed mining fees after a mining industry uproar saying the steep increases will hurt the sector.

Speaking earlier this week during a mining conference held in Harare, mines ministry permanent secretary Prince Mupaszviriho said his ministry was reviewing the impact of the fees on the mining sector. The government early this year announced high fees for firms mining platinum, diamonds and other resources in a bid to boost revenues from the sector.

Registration fees shot up more than 1,000 percent with diamond claims rising up to $5 million as well as coal, natural gas and mineral oils to $100,000 from $5,000

Economist Eric Bloch said a review of the fees will help boost the sector, adding the government needs to find realistic means to address the issue presented by industry players.

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