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Zimbabwe eyes mining land owned by big firms

Harare - Zimbabwe - which continues to get the majority of its manufacturing raw materials from South Africa - is pushing through a new mining legislation that will push large mining companies to compulsorily release excess mining ground, officials said on Friday.

The southern African country has been hit by rising food prices after shortages started to emerge in the aftermath of the introduction of import restrictions. This caused a fall-out between Zimbabwe and South Africa, from where Zimbabwean companies source their stock and raw materials.

Finance Minister Patrick Chinamasa said at a conference of President Robert Mugabe's Zanu PF party in Masvingo that Harare had engaged South Africa over its policy to restrict imports into the country.

"We are supporting our local industry sector through Statutory Instrument 64 (restricting imports). W have opened up engagements with the South African government (and) they understand our situation and they are supporting us," Chinamasa said on Friday.

He added that "all our raw materials for our industry are coming from South Africa" but cautioned that the country has to ramp up its production capacity.

Chinamasa told the delegates to the Zanu PF conference which included SA Deputy President Cyril Ramaphosa and Mugabe that Zimbabwe's economic challenges "are to do with deficits, debt overhang and low productivity" across all sectors of the economy.

Although its industry has continued to struggle, Zimbabwe's economy has been main-stayed by mining in the past few years. However, persistently lower commodity prices and operational constraints being faced by miners have seen the sector perform below its full potential.

Zimbabwe Mines Minister Walter Chidakwa said the mining industry has earned Zimbabwe about $1.76bn this year, significantly up from the $1.6bn mineral sales Zimbabwe grossed in 2015.

Chidakwa asked for support from the Zanu PF conference for a new Mines and Minerals Act which will seek to compel the state to compulsorily acquire excess mining land claims from current operators.

Impala Platinum's unit in the country, Zimplats is battling the government in the Administrative Court over the take-over of its nearly 28 000 hectares of claims.

A chrome mining company, Zimasco, has already given up 22 000 hectares of land claims to the government, Chidakwa said, adding that an additional 22 000 hectares will soon be finalised for takeover from ZimAlloys.

"Please support the Mines and Minerals Act which gives the government the power to repossess mining land owned by the big mining companies. This law should be passed (in parliament)," Chidakwa said.

Gold has been the brightest spot for Zimbabwe's mining sector alongside platinum. Zimbabwe is expecting 23 tonnes of gold this year and Chidakwa said some state mining companies are to be revived to boost bullion production in 2017.

"We will not release ground from state companies to the private sector. That will defeat the whole purpose of (empowerment)."

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