Zimbabwe plans to secure a 26% free-carry ownership in new mining ventures and aims to negotiate similar stakes in existing operations. Secretary for Mines Pfungwa Kunaka emphasized that achieving this target will require discussions with current investors, as prior agreements were based on different frameworks.
This move aligns with a broader trend of resource nationalism across Africa, where nations seek a greater share of profits from their natural resources to address historical imbalances. Zimbabwe’s mining sector, encompassing commodities like gold, platinum, lithium, and chrome, is viewed as pivotal for revitalizing an economy challenged by high inflation and unemployment.
The government already holds a 15% free-carry stake in Karo Resources, a platinum mining company. However, details regarding the financing of stakes in existing projects and the specific criteria for the assets targeted remain undisclosed. The policy is expected to be implemented starting next year.
Industry stakeholders have previously expressed concerns about indigenization policies. In 2011, the Chamber of Mines indicated that mining companies were amenable to a 26% local ownership threshold but were apprehensive about higher percentages, citing potential deterrents to foreign investment.
As Zimbabwe advances with this initiative, the balance between attracting foreign investment and ensuring equitable resource distribution will be crucial for the mining sector’s sustainable growth.
