‘Remove indigenisation threshold on diamond, platinum’

Chamber of Mines of Zimbabwe (COMZ) president, Batirai Manhando has urged the government to scrap off indigenisation requirements on diamond and platinum sectors, as failure to do so will chase away investment for the extraction of the two minerals.

By VENERANDA LANGA

Manhando said this when he appeared before the Parliamentary Portfolio Committee on Mines and Energy on Monday, wherein, he told parliamentarians that the diamond and platinum sectors were very capital intensive.

“We appreciate the government’s position to relax other minerals, but I think this should have been extended to all minerals, more so, if you look at platinum and diamonds, which are very capital intensive minerals,” he said.

“We need more than $5 billion capital for their mining and beneficiation and these require foreign direct investment, and if we stick to the 51/49 threshold we are restricting FDI (foreign direct investment) and investors will not bring in their money.”

Manhando said investors would be wary of investing where they do not hold the majority shareholding, and it was necessary to open up the two sectors.

He said if the government insisted on the 51/49 indigenisation threshold for the two minerals it would be detrimental to business, as locals cannot afford to raise capital for 51% ownership.

The government relaxed the indigenisation threshold for all minerals except platinum and diamonds.

Reserve Bank governor, John Mangudya, who was present at the meeting with parliamentary committee, agreed with COMZ.

“The Mines ministry is seized with the issue to ensure that, at the end of the day, the government comes up with a good policy.

“Anything that increases production in the country is needed,” he said.


4 Comments

  1. To leave Diamonds/Platinum was a poor decision by the ED Adminstration. Where on earth was ED expecting the capital from in this cash strapped nation?

  2. Hell No and a big NO. Please do not make such a grave mistake. Let the Diamonds and Platinum remain on the 51/49 for ever and ever. When this country gains a balance, lots of Foreign investment will come in those sectors but let them partner locals. Lets not make the grave mistake of exposing those two important God given minerals for looting again. Look at Botswana diamonds, is that sweet? we will get where we want to. I still feel lets keep these under or guard for he generations to come. Tichaita mari and we will mine our Diamonds and Platinum. How do you think the Naija`s made their Dangote`s, SA made their Ramaphosa`s and the Motsepe`s. Always jealously guard what you have.

    1. Guard? While they are being looted already by the Chineses/ ed and company? You seem to be clueless. They are already being mined and looted so stop fooling yourself, do you think the corrupt zanu gvt has time to think of next generation.

  3. Indigenasation

    The Indigenisation law is still there and hindering the investment. It is still on all investments. Liberation Mine in Gwayi which had Russian Investors closed yesterday after Government indicated that the Company is not complaint to the Indigenisation act.
    Over 500 workers are jobless as we speak. But President stated that he had solved the issue of Liberation mine. He said that during Independence celebrations in Harare.
    We are now confused.

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