HARARE – Zimbabwe will scrap a law that denies foreign platinum mining companies control of their operations in the country, the mines minister said on Thursday.
Foreign platinum and diamond miners have been restricted to only 49 percent ownership of their Zimbabwe operations by the black economic empowerment law introduced during Robert Mugabe’s rule. The law was aimed at increasing black Zimbabweans’ stake in the mining sector, but foreign investors said its implementation was often murky and open to abuse.
Zimbabwe holds the world’s second-largest known platinum reserves behind South Africa.
Asked to confirm a Bloomberg report that Zimbabwe will scrap the black empowerment rules for platinum, Winston Chitando told Reuters in a WhatsApp message: “Confirmed. It’s part of continued review of (the) Zimbabwe is open for business mantra.”
On when the amendments will be brought to parliament, Chitando said that dates would be announced soon.
Chitando, who is in Washington with Finance Minister Mthuli Ncube scouting for investment in Zimbabwe, did not respond when asked whether the changes will be extended to the diamond sector.
President Emmerson Mnangagwa is keen to revive the mining sector after years of reticence from foreign investors.
