Zimbabwe's plans for enfranchising its indigenous people by requiring mining firms to hand over a stake to local people is generating widespread concern amid industry observers unsure of the country's plans.

The government says it is seeking to assist the indigenous people by passing 50 per cent control to black economic empowerment vehicles, with the country's platinum industry at the centre of the plans.

Yet many local analysts say that the proposed Mines and Minerals Amendment Act (2004) may in fact increase the participation of overseas investors - particularly Chinese players - rather than local groups.

A government minister told Business in Africa that Zimbabwe would “find a way to accommodate the Chinese”, alluding to competition from the Far East to the South African mining heavyweights Implats and Angloplat.

A bilateral trade meeting between Zimbabwe and China in Beijing last month is reported to have paved the way for dividing up some of the platinum resources in the country with the Chinese.

“It is difficult for Zimbabwe to ignore China's needs because it has a growing motor industry and therefore needs platinum. Zimbabwe needs the Chinese, but because earlier loans are still outstanding, they have put forward their demands which we will consider in due course,” the minister added.

In a bid to head off the controversy over who will benefit from the contentious proposed new bill mines and mining development minister Amos Midzi said more consultation was needed on the plans.

He revealed the draft would take some time because it has “generated a lot of interest, necessitating wider consultations with all the major players”, with officials hinting that the Chinese overtures were likely to further complicate the matter.