Zim eyes billions in mining

Harare - Zimbabwe's Prime Minister Morgan Tsvangirai said on Friday the country could attract up to $16bn (R128bn) in exploration and mining investment if it corrected policies that have scared away foreign investors.

Mining has become a pillar of the country's battered economy, following the collapse of commercial farming, with gold alone generating a third of all export revenue.

But large mining houses have kept away from Zimbabwe's mining sector after an economic crisis worsened by President Robert Mugabe's policies. These included a nationalisation law targeting majority holding by locals in foreign-owned mines.

Tsvangirai told members of the Chamber of Mines at an annual general meeting that the global mining boom witnessed in the past few years could resume by mid next year, which the country could take advantage if it had attractive policies.

"Government has a window of opportunity to prepare a conducive policy environment by mid 2010.

"That could see Zimbabwe's minerals sector attracting between $6bn and $16bn in exploration and mine development during the 2011-2018 period," said Tsvangirai.

He said while it was necessary to allow locals to participate in the mining industry, this should be done with a view to growing the country's economy.

There has been no exploration since 2002 in Zimbabwe, which has the second largest platinum deposits after South Africa. It also boasts large reserves of gold, copper, coal and nickel.

Some of the major miners operating in Zimbabwe include Impala Platinum, which is the foreign firm with the biggest mining investments, its rival Anglo Platinum and global player Rio Tinto.

Several mines have shut down in the past due to hyper-inflation and shortages of skills, power and foreign currency.

- City Press