The Zimbabwean government has shelved controversial plans to halve the private ownership of platinum mines in the country, it emerged today (28th July).

President Robert Mugabe had originally proposed changes to the mining bill in order to ease the pressure on Zimbabwe's 600 mines, which are running at under ten per cent output amid the economic crisis.

However, a lack of foreign investment has forced a rethink on a move which would have seen the government assume a 51 per cent stake in the mines and ordinary citizens take the remaining ownership.

Announcing the news, Mines and Mining Development Permanent Secretary Thankful Musukutwa said: "There has been realisation that, in its present form, the bill would not be able to attract meaningful investment.

"Zimbabwe competes with other countries for investors. What would go into the new bill is dependent on the consultations and input stakeholders would have put forward."

Under the terms of the proposal, which was approved by the cabinet in 2006 but never incorporated into law, the government would have received 25 per cent of its stakes for free.

Furthermore, it would have taken up a 25 per cent holding in metals such as platinum and gold, with a 26 per cent stake being handed over to the Zimbabwean people.

The announcement comes as the unity government considers other incentives such as reducing import tariffs on capital goods.

Sources:

Zim withdraws mining snatch bill (28/07/09)

Zimbabwe withdraws controversial mining bill (28/07/09)

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