New mining investment in Zimbabwe is picking up despite investor concerns about impending indigenisation legislation, Pan-African investment group Imara said on Monday.
Imara reports link a softening of political rhetoric on indigenisation with recent announcements from mining companies about new capital commitments.
While it acknowledged that to date there have been no changes to indigenisation regulations, it said a measure of reassurance was provided by the recent speech by President Robert Mugabe at the annual congress of Zimbabwe's Chamber of Mines.
Mugabe told mining company executives his government had "no intention to expropriate the mining industry".
"The speech demonstrated an understanding of the need to refine the (indigenisation) legislation, the long-term nature of mining developments and the acceptance of empowerment credits as part of (indigenisation) requirements," said Grant Flanagan, manager of the Imara Zimbabwe Fund.
"It is hoped that the legislative reforms being undertaken will clarify all these points and ensure that investor confidence increases," said Flanagan.
He added that the view that indigenisation legislation may be softened was supported by recent announcements about capital commitments by significant players in the mining industry.
"RioTinto has announced that it has begun work on a $300 million expansion programme for its Murowa diamond mine. There has also been mention of Zimplats committing a further $500 million for a platinum smelter in the country on top of its stage-two expansion of $445 million," Flanagan noted. - I-Net Bridge