Wednesday, 15th September 2004 (2732 views)

The Zimbabwean government has claimed it may assume half of all stakes in mining firms in the country.

Reports in Zimbabwe's state-run Herald newspaper suggest that President Robert Mugabe is seeking to wrest some degree of ownership from such firms in the region in order to stamp down on the illegal use of foreign currency from exports.

Mr Mugabe was quoted alluding to the lack of "absolute ownership" by the state of the country's mineral resources, with the Zimbabwean leader now aiming to dip into the vast deposits of gold and platinum.

"We are going to demand that government be given 50 per cent shares in the mines. We cannot recognise absolute ownership of our resources. That must be corrected," he declared.

Mr Mugabe argues that at present the export market is being manipulated in order to siphon off foreign currency, with the new measures rectifying this.

Zimbabwe has struggled to cope with its flagging economy in recent years, with rising costs and power and fuel shortages causing headaches for the country's mining industry.

Although the area is no longer the third largest gold producer in the continent, gold mining is doing well due to a host of incentives introduced by the government.

 

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