Foreign miners submit Zimbabwe ownership plan

Originally published in the Sunday Times:

A government notice issued on March 25th by Indigenization and Economic Empowerment Minister Saviour Kasukuwere gave miners 45 days to provide plans on how they would comply with a law that seeks to give stakes of at least 51% to locals.

Kasukuwere said, "most of the major mines are with us and they are cooperating. What is left is for us to evaluate the substance of their co-operation to see if it meets our expectations."

Although the 45 days have passed, the closing date hasn't come yet because it is 45 days excluding public holidays and weekends. By this calculation the deadline would extend to June 2nd. Foreign mining companies then have until September 30th to comply with the law and surrender 51%.

Kasukuwere told Reuters last week that Zimbabwe's government is strapped for cash and would not pay any money for the mining stakes but would base any payment negotiations on the state's ownership of the southern African country's untapped mineral wealth.

He said on Monday that Kazakh the mining group ENRC and Zimbabwe Mining and Smelting Company, which is owned by Sinisteel of China, had also submitted their local ownership proposals.

"The companies are continuing to come in with their plans," Kasukuwere said.

The coalition government, formed by bitter foes President Robert Mugabe and Prime Minister Morgan Tsvangirai, is divided over the implementation of the Indigenization and Economic Empowerment Act, signed into law in 2008. But critics say this will harshly hurt the country's economic recovery prospects.

Tsvangirai has called the empowerment drive "looting and plunder by the greedy elite.