A former senior official in Zimbabwe's Chamber of Mines has spoken out against the government's proposed changes to mining law.

The new rules would see the Zimbabwean government take a 51 per cent share in foreign-owned mines.

According to former Chamber of Mines president Ian Saunders, the move by government is set to compound problems for a sector already facing a number of difficulties.

Foremost among these is the recent increase in the cost of labour, which has seen production costs rocket up by 97.5 per cent.

"The cost of labour per unit of output basis is the highest as has ever been," Mr Saunders said, according to Zimdaily.

There are fears that the move will also deter foreign investment in an industry already reported to be struggling to attract overseas capital.

Zimbabwe's foreign currency reserves are also thought to be severely depleted.

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