The Zimbabwean government has suspended plans to force foreign-owned mines in the country to sell majority stakes to local companies, it emerged yesterday (13th April).

Officially introduced on 1st March, the new rules afforded mining firms 45 days in which to outline how they intend to sell 51 per cent of the shares in their subsidiaries to black Zimbabweans within five years.

However, a spokesman for Prime Minister Morgan Tsvangirai, who heads up one half of the country's power-sharing government, has now confirmed to Reuters that the move is on hold.

"The cabinet has today declared those regulations null and void, and they are being suspended to allow for broad-based consultations on the best way to proceed," James Maridadi told the news provider.

"Nothing is going to happen until the regulations have been reviewed to get a consensus on the way forward."

The news will be received with interest by Anglo Platinum and Impala Platinum - the world's largest and second-largest platinum producers respectively - who both have interests in Zimbabwe.

Anglo is currently developing the Unki platinum mine in Zimbabwe, while Impala has a number of operations through its Zimplats vehicle and Mimosa mine.

President Robert Mugabe has been leading the empowerment push, despite Mr Tsvangirai's concerns that the strategy will discourage potential foreign investors.

The government has previously suggested that Zimbabwe requires input of at least $10 billion (£6.5 billion) in order to redress the parlous state of its economy, which has contracted by 40 per cent in the past ten years.

Source:

UPDATE 2-Zimbabwe suspends majority local-ownership rules (13/04/10)

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