Zimbabwe has announced its intention to secure a 26% free-carry stake in all new mining projects in the country, Bloomberg reported.
The decision is part of the government’s strategy to increase its share in the lucrative mining industry, which includes a variety of metals such as gold, platinum, lithium and chrome.
Zimbabwe’s mining sector is home to several major players including Zimplats Holdings, Anglo American Platinum‘s Unki mine and RioZim.
The government’s plan also extends to negotiations with existing mining operations to obtain a similar stake.
Zimbabwe Secretary for Mines Pfungwa Kunaka was quoted by Bloomberg as saying: “We need to move to a level where we reach 26% shareholding in most of the big projects. A lot of these things would take negotiations with the investors that are on the ground.
“Obviously when you have decisions which were made some years back and decisions were made on the basis of a certain framework, you cannot just willy-nilly go and change that. It takes negotiations.”
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By GlobalData
Kunaka did not reveal the minimum value of mining assets that would require government ownership, stating that further details would be provided at a later time. He also mentioned that the policy would be implemented starting next year.
Last month, Zimbabwe said that it would discontinue providing tax relief to mining companies starting in January 2025.
The government’s decision aimed to compel companies to set up facilities for processing raw materials domestically.
Zimbabwe President Emmerson Mnangagwa previously hinted that the government’s intention was to introduce incentives aimed at stimulating the local processing of mining outputs.
This strategy reflects Zimbabwe’s aim to maximise the economic benefits of its abundant natural resources, which include the world’s third-largest platinum reserves after Russia and South Africa.
