Hi Snowshoe, I have just returned from a trip accompanying some folks from the US that took me to Beijing, Tianjin, Nanjing, Shanghai, Shenzhen.
We met Chinese and US officialdoms, US invested businesses, private and state-owned Chinese enterprises, a bunch of specialized development zones (geographically demarcated areas with special tax benefits, policies, incentives, for specific purpose), restaurants, night clubs, bars, and shops. I learned much and am scared plenty, vivid colours and surround fidelity sounds, and I am energized once again to move a bit more on the gold allocation scale.
Actually, I am very concerned, almost to the point of being scared, and in any case, in no mood to even remotely consider buying any stocks, most bonds, and all real estates in any serious way. More on the weekend.
In the mean nasty time, I am assured that my precious ZIM.au is in safe hands ...
mips1.net
Zim says mine owners secure
By: Stewart Bailey
Posted: 2002/09/02 Mon 10:25 ZE2 | © Miningweb 1997-2002
JOHANNESBURG – Zimbabwe's government sought to calm investor nerves at the World Summit telling Miningweb in an exclusive interview that current ownership patterns of its mining assets would not be disturbed. The country, which receives 40 percent of its foreign earnings from mining, has attracted wide-ranging criticism for the land-grab approach to its agricultural policies. Zimbabwe minister of mines and energy, Edward Chindori-Chininga, dismissed suggestions current ownership of the country's mines by offshore companies, such as Impala Platinum, were vulnerable.He said the country's mining laws and policies were in line with world standards. "Our laws are tried and tested and based on US and Canadian policies. In fact, they are the very ones that you here in South Africa are copying," he said referring to South Africa's recent mining legislation.He said far from dissuading risk-averse international investors from sinking capital into the ailing economy, Zimbabwean government policies were encouraging new entrants to invest. He cited the recent investments by Impala Platinum and Aquarius Platinum in Zimbabwe's Great Dyke platinum complex as a ringing endorsement of Zimbabwe's fiscal regime, which he said was the most attractive in the world for mining firms.Rio TintoMurowa, the diamond mine owned by Rio Tinto in the Zimbabwean midlands - an area particularly hard-hit by farm invasions over the past two years – was further proof of the country's mining friendly investment regime, he said.Andrew Vickerman, Rio Tinto's head of external affairs, said Murowa was undergoing the statutory approvals process, but would go ahead once completed. He would not give details, however, when first production from the mine could be expected. Vickerman said the mine represented a small investment for Rio Tinto: "All the rules have been followed…We are a company that takes long term investment decisions and we are a long term investor in Zimbabwe," said Vickerman.Chindori-Chininga said that Rio Tinto Zimbabwe's decision to proceed with the development of Murowa showed the notoriously conservative UK-based miner had put behind it any fears of security of tenure. Rio Tinto Zimbabwe is listed on the Zimbabwe Stock Exchange (ZSX) and is 56 percent owned by UK listed Rio Tinto plc."They are building roads and infrastructure now and we have helped them with displacement of the local communities. We have found them a farm and we have resettled them. There are positive things going on in Zimabwe," said Chindori-Chininga.Zimbabwe has grabbed international headlines for the past two years as President Robert Mugabe has forged ahead with a controversial plan to eject all white farmers in the country from their land. The evictions have left scores of white farmers dead, injured or jailed and about 300,000 farm-workers unemployed and destitute.Gold sales softenedChindori-Chininga said the government had increased the attractiveness of inward investment by allowing locally-invested mining companies to establish bank accounts outside the country to pay for equipment exports. He also said the country's gold sales system, which dictates that locally produced gold be sold to the Zimbabwean Reserve Bank at the official exchange rate of Z$55 to the US dollar, had been softened. The so-called 'unofficial exchange rate', which reflects actual market fundamentals, is closer to Z$700/US dollar. The upshot of the dual exchange rate system is that gold producers in Zimbabwe have received as little as $41/oz for their gold in the past, ensuring their inability to expand, replace capital equipment or continue operating efficiently. Not surprising then, that the country's gold production has dropped from 30 percent from previous levels of 800,000 ounces over the past two years.Chindori-Chininga said the government recognised the fact that local producers could not survive under the current system. "That is why we have brought in a bridging system which gives them payment above the official rate. It allows them to operate," said Chindori-Chininga, although he would not detail the current payment system. He said the government's plan would be to normalise gold sales, although this would only be done when "fundamental national economic issues had been addressed". |
