Govt giving away minerals for a song – Biti

FORMER Finance minister Tendai Biti has cast aspersions over the Zanu PF government’s capacity to negotiate mineral-based loan deals with foreign firms, adding that as long as the situation remains unchecked, the economy would continue operating in the woods.

PAIDAMOYO MUZULU
SENIOR REPORTER

Addressing stakeholders attending a debt dialogue conference organised by the Zimbabwe Coalition on Debt and Development in Harare on Tuesday, Biti revealed that prior to the formation of the inclusive government in 2009, Zanu PF gave Anjin Corporation an 100 000-hectare platinum concession worth an estimated $52 billion in exchange for a $200 million loan for agricultural inputs.

He said the signing of the deal confirmed government’s lack of negotiating skills.

“Anjin, under some other name, were granted over 100 000ha concession for platinum in the Selous area in exchange for a $200 million loan used to procure agriculture inputs. This deal was not prudently concluded considering that platinum at that time was selling for $2000/ounce and therefore the resource could be valued around $52 billion,” Biti said.

He added: “This can be attributed to the government’s lack of geological information as the last geological survey was done in 1968. We need science and expert geologists to help us qualitatively quantify what resources we have.”

The deal is one of several where Anjin got minerals in exchange for loans extended to Zimbabwe. The same company was also given significant concessions at Chiadzwa diamond fields in exchange for a $98 million loan used for the construction of the National Defence College.

Zimbabwe has defaulted on its debt repayments since 1999 and to date some 88% of the debt is now in arrears.

The Treasury debt office established last year confirmed that the public-guaranteed debts as at December 31 2013 stood at $6,9 billion. The major creditors are World Bank, the Paris Club and International Monetary Fund (IMF). The debts, however, do not include the Reserve Bank $1,5 billion debt and private companies’ external loans.

Under the new economic blue-print, the government is looking at using its minerals resources to leverage debt repayment.

Meanwhile, the IMF mission has since said Zimbabwe does not qualify for debt cancellation under its Highly Indebted Poor Countries programme.

17 Comments

  1. You can say that again Mr Biti. The Zimbabwean political space has been invaded by kickback receiving madmen who don’t care about the future of the nation as long as they cater for their short term needs.

    1. GOOD ADVICE: do something for yourself, for your family. Don’t waste your time talking about these already rich politicians while others are enjoying their lives with money without even paying attention to this dirty politicians. See how this poor South African woman became a millionaire just by buying and selling accidented vehicles. Very interesting. Go to ACCIDENTEDVEHICLES doit COM to see all these 5 companies that she was using to do this business successfully. ACCIDENTEDVEHICLES doit COM , Wake up African people

  2. We are just, but 13 or so million hostages of a liberation struggle gone berserk. Just as a reminder, a real Phd scholar Edison Zvobgo once described Mugabe as “a madman from Ngomahuru hospital for the mental patients, who had been given a baton in a relay race to pass on to the next runner.”
    Instead, argued Zvobgo, the madman decided to run away with the baton and was still running wild in the bushes and mountains!

    And now that baton risks landing in the hands of a more troubled Ngomahuru-patient.

  3. Unotoshaya kuti zvinhu zvacho zvirikufamba sei. Zanu ndeyema quick fix solutions iyi as usual they don’t care abt future generations. What smart negotiations could possibly arise btwn an outdated uninformed centurion and a middle aged up to date quick thnkng individual or group

  4. Corruption comes to play here too!

  5. Unocaster maspersions, Biti, mboko inengeiwewe?

    1. Ehe tiudzeiwo, ma aspersions aitei awavacucaster?

  6. Huyasengat nyfugasa entiyabhuja njokozase tungabussi. Nyol as blazoned! Iyo! Nuiyatta Sam Levy Nyagura.

  7. At the 2023 elections Mugave will only be 100. Muchamama!

  8. Kusura chando chaiko

  9. Biti not qualified to talk about mining investment issues. He killed the chrome mining ventures and failed to implement fiscal measures to stimulate exploration and mining. He allowed Kasukuwere to stall the industry with his indigenisarion law. Exploration and mining is a risky busuness hence requires the security of tenure and transferability of mining rights for exploration to take place.

  10. Biting is daft. How does he evaluate at $52 billion a 100 000 ha concession with no exploratory work done? Obviously Anjin will still have to spend a lot of money to start mining operations and based on current policy this will be done jointly with ZMDC.
    They paid for the claim not for the platinum. There is a huge difference between the two.

  11. You still telling them from outside. Go in there will give you a position. In ZANU PF is where positions are given not earned – so if you go there they will give you one – otherwise your political career is over Tendai. Serious – join them fere fere not nemunyati.

    1. GOOD ADVICE: do something for yourself, for your family. Don’t waste your time talking about these already rich politicians while others are enjoying their lives with money without even paying attention to this dirty politicians. See how this poor South African woman became a millionaire just by buying and selling accidented vehicles. Very interesting. Go to ACCIDENTEDVEHICLES doit COM to see all these 5 companies that she was using to do this business successfully. ACCIDENTEDVEHICLES doit COM , Wake up African people

  12. So sad..but it’s not surprising neIQ ya Mai Mujuru,ya khaya Moyo, yaMutasa ,yaObert Mpofu we will be asking too much Zimbabweans now Dr grace is on the touch line ..this has to stop stopped by us Zimboz if we understand the ramifications of these peoples lack of knowledge and political will to do what is good for the nation..

  13. Mari dzacho dzakatorwa naObert munochemeiko u now have a richest zimbo

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