Zimbabwe has prepared an amended mining law to be presented to cabinet for approval before it is debated in parliament, but it is not clear if the amendment bill will prescribe 51 percent local ownership of all mines.

President Robert Mugabe's government initially published a draft law in 2006, seeking to force foreign miners to sell 51 percent ownership to indigenes and give up 25 percent free equity to the state, but the bill lapsed before it was passed.

Mines Minister Obert Mpofu said the bill had been revived, but declined to say if the amended bill would prescribe 51 percent local ownership of all mines in a country with the world's second largest platinum reserves after South Africa.

The mining industry has emerged as Zimbabwe's top foreign currency earner after the collapse of commercial agriculture, blamed on Mugabe's seizure of white-owned farms to resettle landless black people.

"The amendment is ready. As you know, when a draft bill is ready, it is taken to cabinet, to the cabinet committee on legislation and then back to cabinet for final approval," Mpofu told reporters. "Only then is it taken to parliament."

Mpofu said the bill would be in parliament later this year.

A power-sharing government set up last year by Mugabe and bitter rival Morgan Tsvangirai, now prime minister, has promised to be flexible in its application of a 2008 empowerment law seeking to transfer majority shareholding in all foreign firms, including mines, to indigenous black people.

But the coalition partners have recently clashed over rules issued last month by the Minister of Youth, Indigenisation and Empowerment, Saviour Kasukuwere - a Mugabe ally - giving foreign firms five years to cede control to local people.

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. It is not me who will decide that (ownership thresholds), but parliament," he said.

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

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

The major foreign players in Zimbabwe's mining industry include the world's top platinum producers, Anglo Platinum and Impala Platinum Holdings has gold and diamond mines in the country, which has deposits of gold, diamonds, coal and nickel.

By Reuters