Mining Reforms In Zimbabwe Recovery Plan

A number of reforms for Zimbabwe's mining industry form part of a new economic recovery plan, presented to the country's cabinet by Reserve Bank Of Zimbabwe governor, Gideon Gono. The plan includes an ambitious proposal to "rand-ify" the Zimbabwean economy.

Contained in a copy made available to The Zimbabwe Observer is an ambitious plan to "informally" adopt the rand "alongside the Zimbabwe dollar" as a first step torwards bringing the country into line with Lesotho, Namibia and Swaziland which have a formal monetary link with the South African currency.

The exchange rate will be market-determined which is meant to "rejuvenate" key productive sectors of the economy.

Plans for the country's mineral and metals industries include:

- revising the mandate of the Zimbabwe Mining Development Corporation so that it undertakes exploration and discovery of new deposits;

- banning the export of unprocessed platinum;

- monitoring by Government agents of the "production, refining and valuing of precious metals" on site. This applies to gold, diamonds, platinum group metals and emeralds;

- a special team should be established to "operationalise" a diamond mine at Chiyadzwa. This should be done "well in time for the adoption of the Rand";

- the privatisation of Zisco - the Zimbabwe Iron And Steel company - which would lose its monopoly over the country's iron ore reserves;

- imports of stainless steel, specialist steels and rolled plate should be "discouraged" to help foster local beneficiation of minerals;

- the shareholding of Hwange Colliery Co should be restructured to bring in new investment capital so that the mine can be recapitalized;

- a "use it or lose it rule" should be applied to the two chrome manufacturing companies that hold "Vast swarths" (!) of unexploited deposits;

- chrome ore "must not be allowed to leave the country without value addition";

- small-scale chrome miners should be assisted to set up more smelters around the country;

- a special taskforce should be set up to draft legislation guiding the extraction and marketing of platinum. A platinum refinery will become a viable proposition once ZMDC joint-venture platinum mining companies start operations. There is no other mention of these companies;

- legislation should be introduced to require nickel mining companies who have closed producing mines to release the properties to "interested parties";

Source: Zimbabwe Observer, London