Zimbabwe’s government may allow foreign investors to hold controlling stakes in diamond mines on condition that part of their output is reserved for domestic downstream industries https://t.co/eg6KAyVdWo— Bloomberg Australia (@BloombergAU) December 5, 2018
Bloomberg News
written by Godfrey Marawanyika
Tuesday December 4, 2018
Zimbabwe’s government may allow foreign investors to hold controlling stakes in diamond mines on condition that part of their output is reserved for domestic downstream industries.
Removing a limit on foreign ownership would signal to investors that President Emmerson Mnangagwa is serious about his pledge to revive mining, which suffered years of decline under his predecessor Robert Mugabe. The government is targeting diamond production of 12 million carats by 2023, compared with a forecast of 3.5 million carats this year.
The state is considering waiving a requirement that diamond mines be 51 percent owned by domestic investors, Information Minister Mangaliso Ndlovu told reporters Tuesday in the capital, Harare. The southern Africa nation scrapped the rule for most mines last year, but kept the regulations in place for diamond and platinum producers.
“Government may waiver that local ownership threshold subject to a submission of satisfactory submissions and due diligence,” including that gems be submitted to the state-run Diamond Value Management Centre for clearing, sorting and valuation, Ndlovu said. Private companies must also reserve 10 percent of their gems for “local value addition,” he said.
Zimbabwe has two diamond-mining companies -- Murowa Diamonds, a unit of RioZim Ltd., and the state-owned Zimbabwe Consolidated Diamond Mines. Zimbabwe’s Chamber of Mines, which represents most miners, has urged the government to relax ownership rules for PGM-metal and diamond mines in line with other minerals, citing the high cost of investment for most local producers.
Finance Minister of #Zimbabwe, @MthuliNcube, tells QMB how he plans to end the ongoing currency crisis in his country. pic.twitter.com/HGWIR8mvI4— Quest Means Business (@questCNN) December 5, 2018
For the new #Zimbabwe, we are focused on economic revival for prosperity for Zimbabwe citizens and investors. #Zimbabwe assets are the biggest and best BUY in Africa, right now! @richardquest @edmnangagwa @questCNN https://t.co/t2qy2kRK62— Prof. Mthuli Ncube (@MthuliNcube) December 5, 2018
Zimbabwe's implied cumulative inflation rate measured for today, 12/8/18, is 186%. pic.twitter.com/L9wucjsQwg— Prof. Steve Hanke (@steve_hanke) December 8, 2018
Today, I spoke at the Second Women’s League National Assembly. Women’s empowerment and economic integration are an integral component of sustainable development, and we will encourage more and more women to venture into businesses that currently appear to be the preserve of men.— President of Zimbabwe (@edmnangagwa) December 7, 2018
Yay! It sounds like the new government is on the right track for the people of Zimbabwe. I can't wait to start seeing the wonderful benefits resulting from these new positive changes. 😊 (emphasis mine)
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