Bloomberg cited Mr Robert Mugabe President of Zimbabwe as saying that the country plans a mining law review in its next session of parliament as it seeks to attract investment to the world’s second-biggest platinum deposits
Potential investors in Zimbabwean mining projects are concerned about a proposed law that could force miners to sell 51% of their assets to black Zimbabweans and recurrent threats to nationalize mines. Parliament will reconvene on September 29th.
Mr Mugabe said the review will seek to strengthen the relationship between the government and mining houses. He said that the country will focus on developing gold, platinum and diamond projects.
The government is trying to attract investment to the country which has suffered a decade long recession. Mugabe and former opposition leader, Morgan Tsvangirai formed a coalition government in February after the Southern African Development Community intervened to end a 10 year political dispute. That impasse deepened the recession, caused the world’s highest inflation rate and resulted in famines.
Mr Niels Kristensen the managing director of Rio Tinto Group’s Murowa diamond mine in the country said there is still too much uncertainty to encourage investment. There are inconsistent statements from the government.
Zimbabwe has the world’s second largest chrome and platinum reserves after South Africa and also has significant coal, diamond and iron-ore reserves.
