Mine expansion plans in Zim under threat

Harare – Mine expansion plans for companies in Zimbabwe and the growth of the crucial industry is now under threat because of continued depressed metal prices and spiking government demands for more revenue, executives and mining experts in the mineral rich southern African country said on Tuesday.

Zimbabwe has vast mineral riches spanning gold, platinum, nickel, chrome, diamond and coal among others. These mineral riches have attracted global investors such as Rio Tinto, Anglo Platinum [JSE:AMS], Impala Platinum [JSE:IMP] and Metallon Gold [JSE:].

However, the mining companies in Zimbabwe, which are also required to give up majority shares to black locals under an empowerment drive, are beginning to feel the squeeze from higher taxes, rising fees and softer commodity prices. Experts and executives in the country say this is now dimming investment prospects into expansion projects.