The New Zimbabwe for Sale: Foreigners Will Be Allowed To Have 100% Ownership of Mining Operations

[loyola llothta]

Zimbabwe to Scrap Platinum and Diamond Mine Ownership Rules
March 6, 2019

• 
  Government reversing rules requiring locals to hold 51% stake
• 
  Foreign investors will be allowed to own 100% of operations

Zimbabwean Finance Minister Mthuli Ncube said a rule requiring local investors to control platinum mines will be scrapped and foreigners will be allowed to own 100 percent in a bid to revive investment.



“We are removing that indigenization rule, which is discouraging foreign direct investment,” Ncube said in an interview with Bloomberg Television in Washington. “We say Zimbabwe is open for business; you can only be open if you allow ownership of 100 percent.”



The new rules could be extended to diamond mining, Mines Minister Winston Chitando said in a separate interview on Wednesday. The change to policies introduced by former President Robert Mugabe will increase the appeal of Zimbabwe to the world’s top platinum producers, including Anglo American Platinum Ltd., and could generate interest from Russian diamond miner Alrosa PJSC.



Abandoning the requirement to transfer a 51 percent stake to locals is part of wider efforts to stimulate the southern African nation’s economy. President Emmerson Mnangagwa has sought to water down some of the contentious rules of his predecessor as mining investment dried up.



Zimbabwe holds the world’s second-largest known reserves of platinum-group metals after South Africa, plus substantial deposits of gold, diamonds, lithium, iron ore, coal, chrome and nickel. The changes to the ownership rules would need to be ratified by parliament.

Impala Platinum Holdings Ltd., one of the biggest mining investors in Zimbabwe, is waiting for formal announcements regarding the changes, said spokesman Johan Theron.



“We remain encouraged by ongoing efforts by the government to open the economy to investment and growth,” Theron said in an emailed response to questions.

— With assistance by Francine Lacqua, and Tom Keene

(Updates with comment from finance minister in second paragraph.)

Bloomberg - Are you a robot?

 

[BlackFruitPunch]

nikkas lost worldwide.
nikkas lost eternal.

 

[King Frost]

nikkas lost worldwide.

No, this allows non-Zimbabwe blacks to own their shyt.

You think TI could hold back on the 1.5mil he gives gucci and buy some mines in Zimbabwe?

 

[nullnullnullnull]

As a Zimbabwean I don’t know how this will turn out. I believe it’s a move by the government to get Chinese, Arab and Indian business in country that is economically dead. Once again the people will be ignored and undermined somehow smh

 

[loyola llothta]

No, this allows non-Zimbabwe blacks to own their shyt.

You think TI could hold back on the 1.5mil he gives gucci and buy some mines in Zimbabwe?

lets be serious those cacs and China will get the mines. Zimbabweans will suffer

that was the whole purpose of removing Robert Mugabe before he transfer power

 

[Red Shield]

nikkas lost worldwide.
nikkas lost eternal.

it's a tale as old as time

 

[Red Shield]

lets be serious those cacs and China will get the mines. Zimbabweans will suffer

that was the whole purpose of removing Robert Mugabe before he transfer power

Pretty much. The Russians, Chinese, Indians, Arabs.. and some zimbabwe party officials are gonna be eating.

 

[DrexlersFade]

What else is new always for sale

 

[Cobalt Sire]

They want to encourage investment into their economy...So they're going to let businessmen (most likely non-black) in who can easily outbid local Zimbaweans, and allow them full control, full control of one of their most profitable industries? I'm trying to wrap my head around this. Platinum is extremely valuable, and they can produce more of it than almost anyone else.

Can someone point to me a non-black country that allows foreigners 100% or even half control of natural resources? Natural resources are an easy bag. You're going to just let someone come over and steal billions that easy?

It's like motherfukkers don't want to win.

 

[you're NOT "n!ggas"]

First minute of this clip is a case study.


Personally, I think these kinda decisions encourage a tighter economic grip on the continent.

 

[Ill-Mind]

Yea just roll out the red carpet for these white/arab/asian corporations to gain more control over your land.

 

[Cobalt Sire]

No, this allows non-Zimbabwe blacks to own their shyt.

You think TI could hold back on the 1.5mil he gives gucci and buy some mines in Zimbabwe?

T.I. won't be able to outbid old money Asians/Whites/Arabs etc. The racial wealth gap is huge worldwide because Africa sold their people and got colonized.

 

[xoxodede]

Oh .. they bold.

 

[loyola llothta]

Pretty much. The Russians, Chinese, Indians, Arabs.. and some zimbabwe party officials are gonna be eating.

When China was okay with the coup after meeting with the coup leaders i knew something was fishy

mugabe was falling back on mining deals after billions of dollars disppeared

 

[Cobalt Sire]

First minute of this clip is a case study.


Personally, I think these kinda decisions encourage a tighter economic grip on the continent.

Those miners only have to pay the Zambian government 0.06% percent of their proceeds? Does Zambia not have taxes? And they sold it for 25 million, the new miners made 75 million after a few months. I'm not the biggest businessman ever, but I know that the value of a business is how much profit it can make annually times 5-10, for regular businesses. The thing is, natural resources are never going to go out of style. They are always going to be needed, so you NEVER sell it. Yet, these stupid leaders would rather make chump change in exchange for selling out their people? That is...incredible. No wonder white people are excited about "investing" in Africa.

How are we going to win like this, Africa? Please, tell me. This is fukking retarded. This is unacceptable.