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Diamond and platinum miners lobby to scrap 51-49% law

Image: Reuters

The Zimbabwean Chamber of Mines has said it is engaging government, with a view to push for the scrapping of the 51-49% shareholding structure in the platinum and diamond sector.

Zimbabwe’s President, Emmerson Mnangagwa amended the controversial Indigenisation Act, after coming into power last year. This forced foreign owned businesses to cede 51% of their shares to Zimbabweans.

The requirement was removed in all the economic sectors except for platinum and diamonds.

Addressing journalists in Harare, last week, the chamber’s president, Batirai Manhando said they were engaging government to scrap off the requirement in the extractive sector.

Manhando said the extractive sector must be opened up to allow for more capital injection.

“It is our view that these two industries are capital intensive industries and by their nature require a lot of money. Leaving platinum and diamond on the 51-49%, has the potential to scare off investors. We think the law should be revised in line with other metals,” said Manhando.

President Mnangagwa told Chinese investors during his recent visit to the Asian country that government is working on a new diamond and platinum mining policy to replace the 51-49% requirement.

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