Zimbabwe ‘unlikely’ to seize mine stakes

news24 (Reuters)

Kalaa Mpinga

Fears that Zimbabwe’s government will strip foreign mines of half their assets without compensation are unfounded, according to Kalaa Mpinga, chief executive of Mwana, which has gold and nickel operations there.

“There is a lot of noise but we’re having a good conversation with the government,” Mpinga said.

A document seen by Reuters this week showed a draft proposal by President Robert Mugabe’s party to amend its “indigenisation” law, by which foreign companies must be 51% owned by local black people, under which companies would not be compensated for their stakes.

London AIM-listed Mwana runs Zimbabwe’s largest producing gold mine — Freda Rebecca — but Mpinga, interviewed in London, said he doubted the proposal carried weight.

Continue reading . . .