Categories: Stories

What is the government motive for squeezing Zimplats for more claims?

The agreement also stipulated that the Zimbabwe government would pay $153 million for those resources.  It is yet to do so.

Government has completely ignored this, ominously warning Zimplats about the impending expiry of the miner’s 25-year special mining lease granted to its successor BHP Minerals Zimbabwe in 1994.

“Whether the government of Zimbabwe will extend the Special Mining Lease in 2019 remains to be seen,” Mugabe deposed in his affidavit.

It is this treatment of a firm that has spent $4.588 billion ($533 million of this in taxes and royalties) in the country since 2002 that will spook many investors.

Although the lease is due to expire in 2019, there is an option to renew it for two terms of 10 years each.

Analysts have cited Zimbabwe’s uncertain investment environment, plagued by policy inconsistency, disregard for agreements, a controversial local ownership law and the oft-violent seizure of white-owned farms since 2000, as the reason why the country continues to lag behind its regional peers in terms of drawing foreign direct investment.

In 2015, FDI declined 23 percent to $421 million. Last year, Mozambique and Zambia registered $3.7 billion and $1.6 billion, respectively.- The Source

(171 VIEWS)

This post was last modified on July 20, 2016 1:04 pm

Page: 1 2 3

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024

What is wrong with Zimbabwe? It’s not the economy but the government and its leadership

Zimbabwe is currently in turmoil after it devalued its five-month old currency, the Zimbabwe Gold…

October 1, 2024

Zimbabwe devalues ZiG by 44%, reduces amount people can take out from $10 000 to $2 000

Zimbabwe today devalued its local currency, the Zimbabwe Gold (ZiG), by 44% to trade at…

September 27, 2024

Can today be the turning point for the ZiG?

Today is the third quarterly payment date (QPD) for the year, the second after the…

September 25, 2024

My 50 years of writing- Part Two

I left The Chronicle after nine years and returned to freelancing. I started The Insider,…

September 24, 2024