The Chamber of Mines of Zimbabwe is lobbying government to remove the 51/49% indigenisation cap on the diamond and platinum sectors so that investors have a wide choice.
Addressing journalists ahead of the chamber’s annual general meeting next week, president of the chamber, Batirai Manhando said the need to waive the 51/49% threshold was stemming from the fact that platinum and diamond sectors were capital intensive.
BY Fidelity Mhlanga
“On indigenisation, we do welcome the government position to take away the 51/49% threshold on the rest of the minerals except platinum and diamond,’ Manhando said.
“We are engaging the government. Our view is these are capital intensive industries and by their nature they require lots of money. We think that the threshold should be revised in line with other metals for some time until that industry has actually been invested into so that it can grow.”
Chamber of Mines CEO Isaac Kwesu said the sector was still enduring forex problems.
“There are delays in acquiring critical equipment that is important. Yes, challenges are there, but the issue is how we are going to deal about it,” he said.
During the first quarter of 2018, lithium output grew by 54%, gold 53%, coal 46%, nickel 18% copper 3% with chrome tumbling by 37%
The surging in output was attributed to the firming of mineral prices on the international commodity market.
The chamber will host its annual general meeting and conference from May 17 to 19.