Jan Raath in Harare
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President Mugabe unleashed a devastating new blow to Zimbabwe’s mortally wounded economy yesterday, announcing a new law giving the state a controlling stake in mines operating in the country.
Under the Mines and Minerals Amendment Bill, the Government can take over 51 per cent of companies mining strategic fuels and minerals, taking 25 per cent without paying.
The balance of 26 per cent it needs for a majority shareholding will be paid for, it said. However, the Bill brazenly asserts that payment will come from dividends earned from the state’s shares in the companies it takes without having to pay. It gives the state seven years in which to do it.
The Bill justifies its seizure “in virtue (sic) of its original ownership of all useful minerals in its subsoil”. Companies mining other minerals will be taken over by indigenous Zimbabweans. The method of payment is not specified.
Much of Zimbabwe’s mining industry has been wrecked by Government interference but the ripe plum remaining is the fast-growing multibillion-dollar platinum industry. The largest company with such interests is Zimplats, the local subsidiary of South Africa’s Impala Platinum, which is the world’s second-biggest producer of the precious metal.
Already producing $10 billion (£5 billion) of platinum a year, Zimplats is carrying out a billion-dollar expansion programme to double its output and make the mine one of the world’s biggest. It is by far the biggest foreign investment in Zimbabwe since the country’s independence in 1980. Also in the Government’s sights is the London-based Rio Tinto’s Murowa diamond mine, which has cost $78 million to set up and is on the verge of starting a $270 million expansion.
No comment was available from either of the two companies. The Zimbabwe Chamber of Mines said that it was studying the Bill. Doug Ver-den, a spokesman, said: “It doesn’t look good.”
The proposals are regarded by economists as the logical extension of the lawless invasions of white-owned farms that began in 2000 and set off the decline of one of the most prosperous countries in Africa.
“The Government is invading the property rights of the mining companies,” John Robertson, an economic commentator, said. “It's political patronage. The dividends will go to the select few as a reward for service to the ruling party. It is shallow and damaging in the extreme.”
The Bill specifies that any company showing “wilful noncompliance” in surrendering its shares will have its mining licence cancelled. Any future mining investments will be required to give the controlling share to the Government or black Zimbabweans. “It is going to put a stop to all new mining development,” said Mr Robertson.
Last month the Zimbabwe parliament passed a Bill to force foreign-owned companies to sell 51 per cent of their shares to black Zimbabweans. Mr Mugabe has yet to sign the Bill into law. Before the platinum company committed itself to its investment the Government signed an agreement guaranteeing that the venture would not be nationalised.
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The old geezer has been in office for a long time(27 years in office) winning election after election,doing absolutely nothing for the people.The people have been suffering for decades with little or no hope in site.Wrongly misguided people easily always blame the west for our problems.But, as we can see for ourselves,WHO REALLY IS TO BE BLAMED FOR THE PROBLEMS WE SEE IN AFRICA?.The man should leave the office and let someone with vision and forsight get there and turn things around.Ever since he drove out the white farmers(the people who were bringing in most of the country's foreign exchange),the countrys economy has been getting worse and not better.The inflation rate is incredibly and unbelieveably high(. And who does he blame?THE WEST OF COURSE! But i have to ask :WHO TOOK OVER 51% OF THE PLATINUM &DIAMOND MINES WITH LITTLE OR NO INTENSION OF PAYING DIVIDENDS TO THE RIGHTFUL PEOPLE OR EVEN AT THE RIGHT TIME?Wasas it the west and not President mugabe?he should leave office
Akpede Emojevbe, lagos, Nigeria
I'm a Rhodie, and proud of it. But let's be truthful to ourselves: it's their land and resources, let's work alongside them for the universal good.
Selous Scout, Brisbane, Australia
The people who took over the farms don't know how to farm, and Mugabe doesn't know how to mine platinum. I think it's a part of the Bilderberger's plan to depopulate the world by 80%.
Baron Rothschild, Virginia, USA
Sadly, it's time for the west to step in and liberate these people by forcing the hand of South Africa to do something. I think Brown and European leaders should combine their diplomatic efforts and focus on South Africa and apply the pressure relentlessly. The only reason Mugabe is still in power is because of the complicity of governments that are sympathetic to his cause. Chief amongst these conspirators is the ANC led government in the Sth Africa.
If Brown wants to make a lasting legacy for millions in Africa, this is where he should start. There is too much at stake for to see Sub Saharan Africa slide into complete hoplessness once again and South Africa itself may go the way of Zimbabwe if the tide of insanity isn't stopped now.
Cry Freedom, Brisbane, Qld, Australia.
The Britsih foreign office could not allow a peaceful tiny nation from pursuing its own values and interests, the FO had lost face in 1965, and avenge this they would stop at nothing.
Mugabe was allowed to gain power in march 1980, to slowly destroy this country and fill his pockets. This he has achieved , he has royally screwed up potentially one of the best countries in Southern Africa.
Let see what the "quiet diplomacy" of the ANC Thabo Mbeki does now ?
Impala platinium is South African owned company, that was operating in Zimbabwe ! Note the past tense here.
Lewis , Manchester , UK
In Bermuda, we have what is called the '60/40 Rule'. It means that all local companies must have at least 60% Bermudian ownership. If that policy is a sound one in Bermuda (the almost unparalled business capital of the World), why is the policy dictatorial, or undemocratic in Zimbabwe?
What we are seeing is policies being implemented to reverse the systemic racism that runs rampant in Black countries. Zimbabwe is no exception. The Western World is happy so long as they are in control of every countries industry and natural resources.
This system cannot persists. Africans are calling for freedom.
And those that believe in the prevailing status quo, waste far too much time spewing propoganda. Capitalism is undemocratic.
Stop being myopic: Do you think the indigenous Zimbabwean who wants to eat bread, has to buy it? You are witnessing a country breaking its economic shackles, once and for all.
You may not understand. But Zimbabwe is surviving, even with 2000% infl.
Jonathan, Sandys, BDA
Gilbert Phiri's asertation that its only right for African governments to own a "foothold" in their key resources beggars belief. These resources are controlled by licence already as they are in the west. What Mugabe has done today is guarantee that there will be NO foreign investment in these mines.Kiss goodbye to the billion dollar investment in the platinum mine, kiss goodbye to increased revenues. Equally those revenues which were previously taxed will be reduced by 50% at a stroke becasue the govt will not pay tax on its take , this damages the state further. Mr Phiri apparently is aghast at the low regard the western world has for black african government. I wonder if its any surprise that this is so bearing in mind the damage Mugabe and others have done, south africa excluded most Africans living in ex-british colonies would have been in better health, would be better off and would be better educated than today if they had remained as colonies. Phiri is just wrong.
anthony harrisson, london,
A few facts for everyone:
- Mugabe is the Marxist leader of the Zimbabwe African National Union (ZANU)
- He has been the dictator of this country since independence
- Zimbabwe has the highest inflation rate in the world that was predicted to hit 1.5 million % by the end of 2007, and is, according to the United Nations Economic Commission for Africa, Africa's worst economic performer wth a record 85 % unemployment
- a country that once exported food cannot feed itself now because of Mugabe's policies.
So for all of you old Commie lovers like Neil, congratulations, you've ruined another country. For the rest of us with common sense, we have another example of how Marxist economics can take a country with valuable resources and destroy it. Workers of the World Unite - And End Marxism.
Tom from Memphis
Tom, Memphis, Tennessee
This is how a terrorist regime operates. Take ,...take ,...take either in the name of God or for the sake of the children. Why do the libral whites and blacks here in the USA love this man? Because he started going after WHITE farmers first,...but like every good little dictator he kills more of his own people. FACT: blacks have killed more of their own people than the Klan, AIDS, stroke, heart diease etc...COMBINED!
Sick-and-tired, monroeville, PA
When the whites were discriminating against the blacks there were international protests and sanctions. Shouldn't the world community band together and stop this racist mad man whose policies will only result in degradation and eventaul starvation?
david, Portland, Oregon
Blacks can not govern themselves! It is proven al l over the world where they are "in control" there is massive corruption and total disaray. They are not capable of running anything!!!
sid, atlanta, georgia
Yup, he did a good thing, steal all that land and farm equipment from them evil white africans and give it to uneducated black africans to make more foods to feed teh peoples. Next he will lead his armies to steal more diamonds from teh evil white man
the_miker, New York, USA#1 NYC
I am a white who was born in Zimbabwe. I wonder where all my friends (black) have gone! Many have suffered the ravages of the Mugabe regime - starvation, poor/no health care, unemployment, the destruction of their housing to name just a few. The average Zimbabwean will not make it to 40 years of age! I care for my country and it's wonderful people - please help and prey for them!
Mike.
Mike, Austin, Texas
Anyone that belives the money from these mines are going to the people of zimbabwe are greatly mistaken. Nigeria for example uses its oil wealth to pay off heads of government for support and their country still has no proper roads, public transport or housing for its people when the companies are making billions in revenue. Back to Zimbabwe and the same thing will apply there as it has done in Nigeria and other African countries with dodgy governments.
Steve, London, uk
I do apologise for doubting but, are people like Arnold Ziffle for real? His comments to me are laughable. I know everyone is entitled to their opinion but, Mugabe as a Nobel Peace Prize winner? What planet is he on - or should I contribute to a one-way ticket to Zimbabwe as all is so fine and dandy with the most wonderful leader in the world he would love to spend the rest of his days there. However, I feel quite confident that, should he share his viewson the wonderful Mugabe with his new neighbours, the rest of his days are numbered slightly before he had imagined.
By the way, does Mr. Ziffle live in a cardboard box, having given away all his worldly possesions in an attempt to make up for white racists everywhere or is it only us, European white racists who do the damage and are to blame?
Lianne, Warminster, UK
Gilbert, your are almost certainly Zimbabwean from your surname. Why are you pontificating about the evils of the western governments from the UK? Why aren't you doing it from Harare or Bulawayo... Be thankful that you are in a society that allows you an open voice witohout endagering your life!
Mel, Cleveland , Ohio, USA
Obviously Mugabe is attempting to finanace his quest to counter the evil white racists. All of this is the fault of the ONLY RACISTS, the white Europeans, who are a plague on humanity. Mugabe should be given the Nobel Peace Prize as Algore and Jimmy Carter have. All white European wealth must be siezed and given to the African nations, as well as all the displaced blacks in the world. White Europeans are responsible for all that is wrong in Africa and the middle east.
Arnold Ziffle, Green Acres, USA, Arkansas
Gilbert do you actually think before you write, or are you just making this up. Western countries allow the sale of their assets all the time. I am from Canada and many of our mines and other resources are owned by foriegn corporations. We receive royalties, taxes, wages and other benefits from the mining activities, that is enough, we are not greedy enough to kill the goose that lays the golden egg. Mugabe's policies are anything but sound, stupid is more like it. What company would invest when they do not even have control over the assets they are buying. I invest in companies all over the world and I would never ever invest in Zimbabwe. That being said I have bought some stone carvings, recently as they are some of the best carvers in the world, and thanks to Mugabe they are currently very cheap.
Dave William, Ottawa, Canada
Mugabe is the best that Africa has to offer. He is the paragon of the elite of Africa. So called "whites" should stay out of Zimabawe. If Magage lives to 150, the coutry will be a nice place to live. No one else will be alive, they all will strave to death.
Edwin Swenson, Victoria,
Yes, the European nations had colonies around the world, and some very bad things happened. The US has done some despicable things in the not so distant past. So how does the pontificating about colonial era wrongs or bashing Bush and Halliburton help the poor people of Zimbabwe? It does nothing but make us feel better about ourselves for being 'more caring'. If the despotism of a Mugabe or a Kim Il Jong, the sufferings of Ruwanda are not enough for the 'enlightened' countries or the self absorbed United Nations to take action, then our self proclaimed liberal 'tolerance' is a smoke screen for cowardice and the death certificate of western civilization. Keep buggering on, Gilbert and Neil, Neville would have been proud.
Gerry Gross, Sacramento, California
To Gilbert - "economically sound policies!!?", just like those Mugabe has been following for the past 15 years? C'mon. And check your facts on who owns what in the UK, you might be surprised. German companies own British power utilities and French companies own water. Hey, and if Zim is so great why are you in Swindon?
To Hugh - Mugabe's passing, while welcome, will make no difference to the situation in Zimbabwe as there is a group of gerontocratic kleptomaniacs itching to take over.
To all of you - Zimbabwe is another Haiti. Its people do not understand democracy and it is doomed to bloody chaos and civil war.
Nigel, Gaborone, Botswana
I never cease to be amased by the level of stupidity of people..
Neil is a prisoner of an idealogy.14,000% inflation and of coarse it is the white mans fault. Grow up! The colonial times are over.Crooks are crooks no big secret there. The new black colonists have taken over with the shield of colour before them as a justification for every abuse of there own people.
Gilbert. Most democratic countries do not directly control their mining industries. They tax the hell out of it and let those who are governed by the profit motive run the show and take the risks.
Jack Stoch, Rouyn-Noranda, Quebec, Canada
The unemployment rate in Zimbabwe is 85%. The annual inflation rate is 2000%. Anybody who protests Mugabe's excesses is summarily shot. Before Mugabe's election the country was peaceful and prosperous. His first act was to destroy the democratic process so he could remain in power forever.
And there are STILL people on this board STUPID enough to support this leftist mass murderer?!?
Note: to see the future of Venezuela, look to Zimbabwe. It will take the world decades to partially undo the damage that leftist dictators inflict on the people in their countries.
Peter Grynch, Chicago, IL, USA
It's funny how there are still imbeciles defending Mugabe. If he was taking the shares to benefit the average citizen, few would object. However, that is obviously not the case based on his past actions. The money will go to his cronies and the citizens will continue to suffer while foolish Mugabe apologists continue blaming colonialism from 30 years ago for Mugabe's greed and corruption. It reminds me of the Hitler apologists making up excuses for his actions.
Jorge, London, UK
"No western Government, chiefly UK and USA, would allow 100% foreign ownership of its key resources. It is imperative that any sensible African government has a foot in key industries"
They have a foot in by controlling the regulatory and taxation framework. They lack the capital and\or skills to effectively exploit those resources themselves and by taking control as they have done they are simply scaring away the help they need.
The simple fact is Mugabe and his fellow "elite" are nothing more than ignorant fools, seeking to blame the West for all their woes when in reality their problems are rooted in their own abject corruption. Do you think the tractors on seized white farms plough the land or do you think they were all sold by the new owners for a handsome pile of cash? Are the west responsible for Mugabe's henchmen beating up opposition leaders, or are they the pay of HM treasury as well?
Get real.
Charles Gray, London, UK
Just give it a few more years - Zimbabwe will become Darfur.
Pat, Houston, TX/USA
This looks like what the USSR did except they grabed diamonds from private citizens as well. I bet you that is what is going to happen next.
Christian, bako, usa, ca
What almost everyone fails to see is that the Mugabe government is planning to establish a new economic system in Zimbabwe: it is an experiment in totalatarian Socialism. As in all such experiments, it is necesary break the eggs to make the omelet. Therefore Zimbabwe must be destroyed. That is Mugabe's goal.
Mr. Mugabe was permitted to attend the funeral of Pope John Paul II,in 2005, indicating he is a Catholic; and probably a Jesuit as well. This is why he is permitted to continue. He is carrying out the orders of the Vatican; to create a One World regime in Africa. That is why is immune to criticism by the other world powers.
Crane0, Colorado Springs, USA/Colorado
Its very revealing that so many white commentators show more concern for the foreign multinationals than for black zimbabweans, while, like Raath, mouthing humanitarian interventionist pieties. Do people really want to see Zimbabwe invaded like Iraq?
brian, sydney, australia
As an ex Zimbabwean I can assure you that the only reason President Mugabe is doing this is to make sure he personally gets a piece of the pie. The starving masses won't see an iota of that money, it will be well managed by Mugabe and his cronies.
So all you bleeding hearts who think he has some greater magnanimous purpose in mind here should really wake up and smell the absolute corrupt power of dictatorship.
Jason Theron, Wellington, New Zealand
For a long time, I've wondered what Mugabe had that prevented the rest of black Africa and the West from protesting too loudly. Now I know: they were hoping that, by remaining quieter than they perhaps should have, Mugabe would not dare strike at the plantinum mines.
Roger, Brisbane, Australia
It is interesting that no one recognizes that Ian Smith ran a country that had one of the most promising economies in Africa. It is shameful that the now starving Zimbabweans would rather Mugabe than Smith.
Smith and his regime were not saints - but Rhodesians had enough to eat and lived in a stable country with a strong and valuable currency.
Shameful that no one dares to stop Mugabe from ruining this proud country even further. The last nail in Zimbabwe's coffin is a civil war. This too shall come to pass.
It makes me almost cry to see this situation - even though I am not from Zimbabwe nor have I lived there.
Rav, California, USA
Gordon, would the British hand over Platinum mines (if it had any) to be run by the French or Dutch? Why is what is good for the goose not good for the gander? Wouldn't you agree that Zimbabwe is in this state of an economic maelstrom because of Britain's interference in the internal affairs of a sovereign state? There is no way a country that is not at war and has rich mineral resources can have such galloping inflation that is worse off than war-torn countries with no functioning governments e.g Somaliland; unless a hidden hand of western political manipulation is at work
Gilbert Phiri, Swindon, UK
Economically sound, Gilbert, maybe - but we all know that the result will be a destruction of the last viable industries in Zimbabwe along with deepened destitution for the nation's disenfranchised population and greatly enhanced personal foreign holdings for Mugabe and his corrupt henchmen.
Has any other leader, since Hitler, presided over such a catalogue of corrupt and economically misguided, racist persecution of the wealth-generating core of their own, once prosperous, nation?
Gordon Bell, Redditch, UK
More typical 'British imperialism ruined the world' comments from Neil, Gloucestershire, England. What were the economic stats when Rhodesia was administered by the British though? I'm guessing not 2000% inflation, mass starvation and people carrying around banknotes in wheelbarrows to buy a loaf of bread or a can of gasoline. It is shocking how many people will defend a brutal and incompetent dictator simply on the basis the British used to run his country and some of them are a bit embarrassed about that fact.
John, Manchester, UK
As usual some people always blame Europeans for all the woes of these corrupt regimes. Neil needs to remember that Rhodesia was handed over a rich country with vast natural resources and an efficient farms. Mugabe has systematically destroyed all of this to prop up his corrupt regime and to increase his own personal wealth. It has nothing to do with colonialism apart from using it as the excuse to steal first from the white residents and secondly from the local population.By the way I am not a proponent of colonialism either.
Alistair, Glasgow,
Rhodesia/Zimbabwe was artificially created by British colonialists for their own strategic and commercial benefit, not for the benefit of the indigenous people of the area. For many years the peoples of this country were exploited by Colonists and their multi-national commercial backers. It may be distasteful to many people of European origin, but the fact is that what Zimbabwe has become is as a result of that exploitation.
Neil, Gloucestershire, England
One would hope that, by now, both Colonell Gadaffi and China and other investors are becoming rather concerned with their dealings with their once best friend Mugabe. After all, they flashed their cash and were promised huge assetts incuding bricks and mortar, nigh on the half of Zimbabwe's acreage, mines & contents and anything profitable left to plunder.
Hopefully, this shows them the errors of their ways. And, you never know, China might even begin to doubt its investments in South Africa etc. and not trust the promises of certain Iranian leaders. Never thought I would say this but, carry on Mugabe - PRETTY PLEASE!
Lianne, Warminster, UK
Former Prime Minister Ian Smith died in Cape Town on Tuesday. Probably of a broken heart.
Duncan McGregor, Melbourne, Australia
It's not hard to see why Ian Smith was more popular amongst Blacks than Mugabe was and how his opposition to Black majority rule has been entirely vindicated. Sad, very sad, but true.
Alistair , cape town,
He's simply demonstrating to Bottler how policies of increased state control can lead to economic nirvana.
Ray Warren, Dartmouth,
Regardless of anything else, what is he going to do with all that at his age?
Pete Thompson, Rapagnano, Italy
No western Government, chiefly UK and USA, would allow 100% foreign ownership of its key resources. It is imperative that any sensible African government has a foot in key industries, as is the practice in the western world! Wouldn't it be folly for Mugabe to leave these key minerals in the hands of western companies with ties to western secret service organisations that prernnially undermine African governments. The low regard, let alone cheek, that the western world mindset has for black Africa is astounding! Mugabe's reasoning is economically sound on this score!!
Gilbert Phiri, Swindon, UK
Who cares! This guy is in his eighties and soon this poor specimen of a human being will leave this world and hopefully his once decent country will return to a normal democracy.
Hugh, Bournemouth, UK
Probably what Mugabe is really doing at this point is trying to get as much as he can together that he can take with him and put into a nice safe bank account somewhere, enough so that he can feel welcome and not have to worry about extradition.
Christopher Hobe Morrison, Pine Bush, Ulster County, NY, USA