Business Report Companies

Anglo to sell at least 10 Zimbabwe operations

Published

London - Anglo American would sell some of its interests in Zimbabwe in the next few months, Kate Aindow, a spokesperson for the gold and minerals producer, said yesterday.

Anglo American had responded to proposals put forward by the Zimbabwean government to expedite the sale of foreign mining claims, and unused and underutilised mines.

"These are mostly mining claims and include reserves containing copper, gold, nickel and some limestone," Aindow said.

Anglo would sell "more than 10" such interests, mostly mining claims, to domestic mining firms. Earlier this month, President Robert Mugabe said his government wanted to control the key mining sector, which is still largely foreign owned.

But representatives from the Zimbabwean ministry of mines contradicted Mugabe's statements and said his comments had been taken out of context in a meeting with Impala Platinum earlier this month, an executive from the firm said last week.

Minister of mines Amos Midzi told the state-owned Zimbabwe Herald on Monday that his ministry had not directed foreign mining firms to sell their mining rights to local businesses as part of black economic empowerment.

"The government's position is very clear that in every economic sector there should be unhindered black economic empowerment. Our ministry has asked the Chamber of Mines to take government proposals seriously," he told the newspaper.

Anglo American would sell only claims outside its working operations in Zimbabwe, Aindow said. "We have some operating activities that are not being sold or dropped," she said.

Anglo operates a small gold mine in Matebeleland in southern Zimbabwe, and Zimbabwe Alloy, which makes high-carbon ferrochrome.

Another mining giant, Rio Tinto, was included in a recent television address to the country by Mugabe as being part of the mining sector the government wanted to control.

Rio recently swapped its holding in Rio Tinto Zimbabwe to boost its ownership in Murowa diamond mine in southern Zimbabwe to 78 percent.

A spokesperson said Rio Tinto had no intention of selling its shares in Murowa and had received no contact from the government.