Zimbabwe's mining industry has been left in uncertainty after a draft mining bill was put on ice after Robert Mugabe dissolved parliament this week.

According to Austin Zvoma, Clerk of Parliament, the Mines and Minerals Act, which would compel all foreign owned mining firms to surrender majority stakes to local black citizens, has lapsed after Parliament stopped sitting.

As a result of the stoppages, investors are adopting a wait and see attitude while expansion operations have been restricted, mineweb.com reports.

When the joint presidential, parliamentary and local Government elections take place at the end of March the government will have a chance to reintroduce the bill but until then Mr Zvoma said it "is no longer of any effect at all".

If the law is passed, Government will take over 51 per cent of firms' mining strategic minerals like coal and coal-bed methane with the state taking 25 per cent.

President Mugabe is expected to be re-elected again and he believes the law is absolutely necessary to ensure that black people have a share in the country's mining wealth.

Source:

Controversial Zimbabwe mines bill lapses following dissolution of Parliament, 30/01/08

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=45541&sn=Detail

Ÿ Adfero Ltd