Leading miners in Zimbabwe are to meet with the government to discuss proposals for assuming a stake in overseas firms, according to reports.

The controversial proposals came to light earlier this month when the cabinet approved plans by president Robert Mugabe's administration to take 51 per cent of all overseas mines.

Mines minister Amos Midzi said the act would "indigenise" the mining industry, but the proposals have already met with fierce opposition from miners including Implats, the world's second largest platinum firm.

Now Mr Midzi says the miners will come to Harare to discuss the policy next week, in a bid to establish a compromise solution.

Under the proposals the government would assume 25 per cent of a firm on a non-contributory basis, with the remainder settled through the expenses of future dividends – effectively transferring a majority holding for no money up front.

Implats has already said it believes the proposal "is not in the best interests of developing the platinum industry in Zimbabwe", stressing that it is also "inconsistent with previous discussions with the Zimbabwean government".

Zimplats chief executive officer Greg Sebborn has aired similar sentiments this week, telling Reuters that the firm had drawn up two clear agreements in the last decade with the Zimbabwean government that cover the firm's investments.

"There is a lot we can do as a company if these agreements are breached, but we would not like to discuss that right now. All we can say is that we hope these agreements are honoured," he said.

Already there are concerns over the government's involvement in the mining sector, with the Zimbabwean government’s desire to profit from the country's abundant natural resources causing much friction when first mooted in 2004.

There are fears that the state plans may inhibit investment despite the abundant natural resources in Zimbabwe, particularly in light of moves by the Zimbabwean president in seizing most of the white-owned commercial farms in the last decade.


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