The Chamber of Mines of Zimbabwe (COMZ) has once again urged government to drop the 51/49 indigenisation threshold on diamonds and platinum to promote investment, according to a local daily.
Harare relaxed the indigenisation threshold for all minerals except platinum and diamonds.
COMZ president Batirai Manhando was quoted as saying that locals cannot afford to raise capital for 51 percent ownership.
“We appreciate the government’s position to relax other minerals, but I think this should have been extended to all minerals, more so, if you look at platinum and diamonds, which are very capital intensive minerals,” he said.
“We need more than $5 billion capital for their mining and beneficiation and these require foreign direct investment, and if we stick to the 51/49 threshold we are restricting FDI (foreign direct investment) and investors will not bring in their money.”
Manhando said investors would be wary of investing where they do not hold the majority shareholding.
Meanwhile, the country’s central bank governor John Mangudya said the mines ministry was seized with the issue to ensure that government comes up with a good policy.
“Anything that increases production in the country is needed,” he said.
Image credit: Chamber of Mines of Zimbabwe