Harare pushes ahead with nationalisation

[techead]

ZIMBABWE will set up a sovereign wealth fund to own 51% stakes of mining companies, effectively nationalising half of the country’s key resources sector, a government minister said on Wednesday.

Saviour Kasukuwere, Minister of Youth Empowerment and Indigenisation, said the government in the resource-rich country would publish guidelines on mine ownership regulations on Friday.

The move is likely to discourage foreign investment in the recovering economy and will hit foreign miners operating in Zimbabwe like AngloPlat and Implats, the largest and second largest platinum producers in the world and mining giant Rio Tinto, which runs a diamond mine in the country.

“In the mining sector specifically, we have been getting a raw deal all this time with companies taking money out of the country,” Kasukuwere said.

Kasukuwere said earnings from mineral exports reached $1.7bn in 2010, about 30% of the country’s estimated yearly GDP, but that mining companies had only paid $4m in taxes to the government.

President Robert Mugabe has rattled investors with his government plans to force foreign-owned firms to sell at least 51% to local blacks.

URL

http://www.miningmx.com/news/markets/Harare-pushes-ahead-with-nationalisation.htm

 

[Zyzzyva]

Julius will be taking notes with his crayons.

Om Nom Nom Nom

 

[warchylde]

They are also taking over the farms that are wildlife reserves

 

[techead]

scary thing is,the other day people were arguing that juliass (read, ANC) cant simply take 60%.....

nuff said.

 

[BrokenLink]

If juliass could read he would be very excited about this. But looking at the bright side, next year when they have to decide on the policy for nationalizing mines here then there will be 1000`s of ex zim miners looking for work here thanks to mugabe causing all the mines there to close.

 

[TJ99]

Wow, just when we thought there was nothing left of that country to destroy. Why the hell is anyone still stupid enough to do business there?

 

[xumwun]

Julius will be taking notes with his crayons.

Om Nom Nom Nom

Ill be surprised if he can even write his name.

 

[Nothxkbi]

 

[TheGuy]

Wow, just when we thought there was nothing left of that country to destroy. Why the hell is anyone still stupid enough to do business there?

High Risk means high reward.

 

[dlk001]

Wow, just when we thought there was nothing left of that country to destroy. Why the hell is anyone still stupid enough to do business there?

Companies like AngloPlat arent stupid. As long as it makes good business sense, they will stay.

 

[Vrotappel]

Companies like AngloPlat arent stupid. As long as it makes good business sense, they will stay.

They have long term fixed investments made a long time ago. I don't see them making any new ones.

 

[TJ99]

They have long term fixed investments made a long time ago. I don't see them making any new ones.

Fair enough, but will an investment still be worthwhile if more than half of it is stolen?

 

[Hemps]

So Zim will make the first mistakes on nationalization but knowing our lot they all think they can do it better even after the mines turn to krap.

 

[b1scu1t]

It's like the Mercedes S class. If you want to know whats gonna be in your car in the future, look at whats in the S class now.
If you want to see whats gonna happen in South Africa in the future, look at whats happening in Zimbabwe now.

Scary thing about reasoning tha way is that you realize it's a competition. :-/ haha SA is is rushing to get their game on! Haha

 

[Hemps]

Better them than us - let them do it and when it's a stuff up hopefully our "workers" will see first hand what's in store for them.

Didn't some union warn Malema about stuffing with their livelihood?