Six Zim Mines Respond To Controversial Indigenisation Proposals

In an interview with Radio VOP, Kasukuwere, clad in a cap and T-shirt in his office, said he was, however, very unhappy that some of proposals had the “same names appearing maybe being used by Westerners to act as fronts in the vetting process”.

He said: “I can confirm that at least six mining firms have told us what they intend to do as far as indigenisation is concerned. I am, however, unhappy that we tend to see the same names appearing in their pitch letters which is worrying”.

President Robert Mugabe has regularly scolded local business entrepreneurs accusing them of being used by Whites especially the British and the Americans, saying Zimbabweans could be re-colonised.

While the minister did not reveal the names of the concerned mining entities, it is reliably understood that mining giants Rio Tinto Zimbabwe Limited (Rio Zim), Freda Rebecca Mine, Unki Mine and Zimplats (Private) Limited have confirmed and dished out their proposals to Minister Kasukuwere.

Rio Zim currently has a market capitalisation of US$53,923,626.00 on the Zimbabwe Stock Exchange (ZSE).
Its share price stands at US$1,38. Rio is the second most heavily capitalised mining concern on the bourse after Hwange Colliery Company Limited (WCCL) whose market cap stands at a huge US$140,536,616.16.

However, WCCL faces numerous financial problems and dwindling international markets and prices for its products. The mining giant is mainly government-controlled by a huge shareholding, and is currently led by tycoon, Tendai Savanhu, a Zanu (PF) functionary.

The Minister of Mines, Obert Mpofu, in an interview, said the mining industry was “picking up” from about two years ago when many mines were closed resulting in workers being sent home.

Investors have questioned the new indigenisation regulations in the mining sector asking why they should continue putting their money on mines while not being allowed to take dividends back to their investors in the West.

Kasukuwere urged mining houses to come clean and reveal their proposals otherwise government would be forced to “take over the mines because they belong to Zimbabweans”.