The Zimbabwean government has published a draft bill which would force platinum mining companies to transfer majority shareholdings to local owners.

President Robert Mugabe's government has previously passed a general bill which compels foreign-owned miners operating in the country to give 51 per cent stakes to indigenous Zimbabweans.

The new bill differs from its predecessor in that it includes the condition that 25 per cent of the company must be given to the government.

News of the proposed regulations comes amid a backdrop of increasing economic uncertainty in the country and is likely to be greeted with trepidation by platinum companies and their shareholders.

It is thought that the bill could further unhinge expansion plans, particularly those of Anglo Platinum, which is currently developing a mine project near Gweru on Zimbabwe's Great Dyke.

Speaking when reports of the initial black empowerment bill surfaced, Zimbabwean economic consultant John Robertson told Reuters: "Those [companies] already here are likely to hold back on any expansion programmes, while possible new foreign investors are likely to also hold back to watch how this is going to work."

Source:

Zimbabwe to transfer shareholdings of foreign miners, 17/11/07
http://www.metalmarkets.org.uk/2007/11/19/zimbabwe-to-transfer-shareholdings-of-foreign-miners/

Zimbabwe govt seeks 25-pct stakes in mining firms, 17/11/07
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=allBreakingNews&storyID=2007-11-19T071351Z_01_WLA3128_RTRIDST_0_ZIMBABWE-MINING-LOCALISATION-URGENT.XML

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