Zimbabwe's draft mining bill will not force platinum mining firms to give a stake of their mines to the Government for free, it has been claimed.

Robert Mugabe's Government was expected to include a requirement that mining firms transfer a majority stake to locals including giving the government a free 25 per cent stake.

But according to Reuters, mining firms were worried by the news and as a result it could cause an economic crisis by scaring off foreign investment.

A top official told Reuters that the bill would be tabled after the elections and said the Government would "pay fair value" for the stake in the firms.

"For companies that are listed, the government will pay a market value and for those that are privately owned, the Government will hire consultants to verify the value," the un-named official said.

Both Anglo Platinum and Impala Platinum have mines or are developing mines in the country and "there are many companies that are prospecting and operating mines there. Many others still want to come in," the official added.

Zimbabwe is a major source of platinum and about half the mines in the country are foreign owned.

Source:

Zimbabwe won't grab free stake in mining firms, 07/02/08
http://africa.reuters.com/business/news/usnBAN741820.html

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