Mugabe flies to China to save platinum investments 26th July 2005

Zimbabwean President Robert Mugabe has flown to China for a week of talks designed to safeguard the input of Chinese investment into the Zimbabwean economy.

Following international pressure on Chinese investors to pull out of plans to invest in Zimbabwe's mining industry, Mr Mugabe is looking to quell fears over his regime.

Many potential investors, who have been looking at the rich platinum mining industry in Zimbabwe as a big growth area, have become uneasy following criticism from the international community of Mr Mugabe's decision to destroy many illegally built houses, leaving thousands homeless.

The Zimbabwean leader considers platinum as a key source of revenue for the country over the coming years, and is therefore desperate to see outside investment into the platinum mining industry to continue.

However, platinum miners in neighbouring South Africa are becoming increasingly concerned over Zimbabwe's closeness with China, as they fear the relationship could put their commercial interests in Zimbabwe under threat.

The future of Zimbabwe's platinum production will become more clear once Mr Mugabe returns from his Chinese mission.
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