Zimbabwe draft bill says to only issue mining rights to listed companies

zimbabwe-stock-exchange

Zimbabwe will only issue mining rights to companies listed on the local stock exchange and will not allow the export of raw minerals without ministerial approval, according to a draft mining bill published on Friday.

The bill, which has been in the works for more than a decade, will now be sent for debate in parliament.

Anglo American Platinum, Impala Platinum and Aquarius Platinum are some of the foreign mining firms operating in Zimbabwe but they are not listed on the local stock exchange.

“No mining right or title shall be granted or issued to a public company unless the majority of its shares are listed on a securities exchange in Zimbabwe,” the Mines and Minerals Amendment Bill said.

Under the proposed law, holders of mining rights would also be required to use banks registered in Zimbabwe as the government seeks to have greater oversight on finances generated in the mining sector.

The government would no longer allow the export of raw minerals unless with written approval of the mines minister, the draft law said.

Minerals like gold and silver would only be exported in refined form as Zimbabwe seeks to get more local involvement and jobs from the mining sector.

Zimbabwe introduced a platinum export tax in January last year but suspended it seven months later after mining companies, including Amplats, Implats and Aquarius, agreed to support local metal processing.

The draft bill also said platinum metals, iron ore, chrome and coking coal would be among 19 commodities designated as “strategic minerals” considered important for the economic, social and industrial future of the country.

Source: CNBCAfrica