SA-BASED miners Anglo Platinum, African Rainbow Minerals and Impala Platinum could face a reprieve from tough empowerment laws proposed by the Zimbabwean government following yesterday’s announcement by the country’s mines minister that an amended mining law would soon be discussed by the cabinet.

Zimbabwe, which is desperate for foreign investment to revive an economy whose collapse has been blamed mainly on mismanagement, recently shocked investors when it published a law requiring that at least 51% of ownership of foreign companies be transferred to locals. However, foreign miners have been hopeful that common sense will prevail.

Yesterday, Mines Minister Obert Mpofu told reporters in Harare that an amended mining law would be presented to the cabinet for approval before it was debated in parliament.

He declined to clarify whether the amended bill would also prescribe 51% local ownership of mines, although sources in Harare said the amendment would take into account submissions made by the Chamber of Mines on how to protect foreign miners.

Mpofu said the mines ministry was studying the empowerment regulations, which came into effect last week. “We are currently looking at the indigenisation law; we want to make sure that legislation tallies.”

Mpofu said he had consulted widely, including with mining companies, before producing the draft.

Reuters said the Chamber of Mines claimed it had not seen the bill, but had proposed setting mining firms a target of 25% local ownership within 10 years, while giving empowerment credits for social investments and infrastructure spending.

Despite international concern about the proposed indigenisation laws, Anglo Platinum said it would proceed with the scheduled commissioning of its R3,4bn Unki Mine development in the third quarter of this year. The company said it had already invested 300m in the mine in Shurugwi, towards the southern tip of the Great Dyke, a mineral-rich geological area.

By BusinessDay