Rhodesia's Mugabe Demands 51% of mine production
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Mugabe backs plan to take controlling stake in mines
By Tony Hawkins in Harare
Published: April 18 2006 18:19 | Last updated: April 18 2006 18:19
In his first public statement about the issue, Robert Mugabe, Zimbabwe’s president, on Tuesday endorsed his government’s plans to take a 51 per cent stake in foreign-owned mining companies – a decision likely to anger firms active in the country.
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South Africa, which has repeatedly refused to condemn Mr Mugabe’s policies, is the biggest foreign investor in the country’s mining sector, with platinum investments owned by Impala Holdings, Anglo American’s Unki platinum mine which is under development and the Metallon group’s gold mine holdings.
Other foreign investors under threat from the government’s proposed nationalisation strategy are Rio Tinto which has gold, nickel and diamond interests in Zimbabwe and the Mauritius-registered Aquarius group that has ferrochrome and platinum investments in the country.
At independence celebrations in Harare on Tuesday, president Mugabe said: “ We want 51 per cent in favour of the government and 49 per cent in favour of the investors. You, the investors, will get a rewards” he said “but the reward should be balanced by ourselves.”
President Mugabe’s public backing of Amos Midzi, minister of mines, who made the first takeover announcement six weeks ago comes as a blow to mining companies who had claimed that Mr Midzi had acted prematurely.
Mining industry sources insist the plan is not official government policy. But Mr Mugabe’s public comments mean nationalisation of the mining sector is high on the policy agenda.
His comments also contradict statements by Mr Gideon Gono, governor of the central bank, who had written a paper to the cabinet urging the authorities not to pursue a policy mining industry sources argue would spell the end of western and South African involvement in the industry.
President Mugabe also used the independence rally to turn up the heat on the opposition Movement for Democratic Change and Morgan Tsvangirai, its leader, warning that groups trying to topple the government by public demonstrations were “playing with fire”.
Mr Mugabe said: ”Anyone who dares lead any group of persons to embark on a campaign of violence will be inviting the full wrath of the law to descend mercilessly on him and those who follow him”. |
