Accessibility links

Zimbabwe’s Mimosa Mine Transfers 10 Percent Stake to Community Under Empowerment Act


In doing so, Mimosa Mining, a joint venture between Aquarius Platinum and Impala Platinum, has become the third mining company to make over a community share

Another major Zimbabwean mining company has transferred a 10 percent equity stake to its local community as a first step to comply with the country's controversial Indigenization and Economic Empowerment Act.

In doing so, Mimosa Mining, a joint venture between Aquarius Platinum and Impala Platinum, has become the third mining company to make over a community share.

It also pledged $10 million to fund community development programs in Zvishavane.

Indigenization Minister Saviour Kasukuwere told VOA Studio 7 negotiations with other mining companies are continuing and “making very good progress”.

Kasukuwere dismissed critics who say that the indigenization program is intended to drum up support for ZANU-PF ahead of elections.

Canadian mining firm Caledonia Mining recently dismissed Kasukuwere's indigenization drive as one meant to galvanize support for ZANU-PF ahead of the polls.

"We have now communicated with Caledonia management that we will now be paying them the $3,7 million that they paid to get this mine in the beginning," Kasukuwere told the VOA's Sandra Nyaira.

"We told them that if they do not want to comply, as they have done, then that's very simple, we take over simple and straightforward and run it as a Zimbabwean company."

Kasukuwere said his ministry is now targeting diamond mining companies in Marange, Murowa Diamonds in Beitbridge and other gold mines in the country so they can also comply with the indigenization and empowerment act.

Economist Eric Block disputed Kasukuwere’s assertions that indigenization, in its present form, will benefit ordinary Zimbabweans.

"We certainly need indigenization and economic empowerment in the country but in the way it is being presently, I do not see how it will make major changes in the people's lives," he said.

Economist Prosper Chitambara of the Labor and Economic Development Research Institute of Zimbabwe says the government should focus its efforts on the informal sector where it can create jobs lost in the formal economy.

XS
SM
MD
LG