Zimbabwe says now “owns” 51pct of foreign miners

Zimbabwe's government raised the stakes on Thursday in its drive to wrest majority control of foreign mining companies, with a minister saying the state now considered it owned 51 percent of firms that have not complied with local ownership laws.

Thursday, April 05, 2012
A Zimbabwean miner works underground at Metallon Gold mine in Shamva about 80 km (50 miles) north of the capital Hararre, June 14, 2011. Net photo.

Zimbabwe's government raised the stakes on Thursday in its drive to wrest majority control of foreign mining companies, with a minister saying the state now considered it owned 51 percent of firms that have not complied with local ownership laws."All mining companies that have not complied ... should note that 51 percent of their shareholding is now deemed to be owned by the state," empowerment minister Saviour Kasukuwere said in a statement.It was not immediately clear which firms were being targeted, or whether President Robert Mugabe's cash-strapped government planned to pay for the shares. Kasukuwere did not respond to requests for clarification.The demand for foreign companies, particularly miners, to transfer a 51 percent stake in local operations to black investors is widely seen as a tactic by Mugabe's ZANU-PF party to raise cash for elections that may come this year.Johannesburg-listed Impala Platinum, the world's second-biggest platinum producer, bowed to pressure last month to surrender half its Zimplats unit, although details of the transfer have not yet been worked out.Analysts said this latest broadside from Kasukuwere might be more bluster than fact.