Mugabe mine grab
threat deepens crisis
STELLA MAPENZAUSWA, Harare | Thursday 1.30pm.
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A THREAT by Zimbabwean President Robert Mugabe to seize the assets of foreign mining companies dealt a further blow to investor confidence on Thursday in a country already suffering political and economic turmoil.
Analysts also said Mugabe's pledge to impose price controls on basic goods after parliamentary elections this month will further damage the economy.
In an interview with Britain's Independent newspaper nine days before a general election, Mugabe said that once the issue of land ownership is settled, his attention will turn to the mining sector.
"The land question will be settled," he said. "But who owns our mines? We are gold, copper, asbestos and iron producers, but most of the benefits are enjoyed by the former colonialists."
"After land we must look at the mining sector," Mugabe said. "There must be Africans as owners, not just as workers. At the end of the day you must be able to say the resources are ours, our people own the mines, our people own the industry."
Mugabe's comments drew disbelief and dire warnings from an industry that contributes 8% to Zimbabwe's Gross Domestic Product and generates 30% of export earnings.
"It would be the end of the mining industry if he treats it the same way he has done land," John Hollaway, a leading mining consultant in Harare said.
International mining giant Anglo American said on Thursday it has not discussed with the Zimbabwe government its mining or other activities in the southern African country.
"We have high quality assets in Zimbabwe. We have confidence in the long term future of Zimbabwe," said Anglo spokesman Nick von Schirnding.
"Of prime concern to us and other investors is the political stability of the country and respect for the rule of law. In that respect, free and fair elections will be very important for ongoing confidence in Zimbabwe." -- Reuters |
