Zim­babwe Al­loys hands over half of as­sets to Mu­gabe govt

Business Daily (Kenya) - - REGIONAL BUSINESS -

Zim­babwe Al­loys, the coun­try’s sec­ond largest fer­rochrome pro­ducer, has ceded half of its min­ing claims to the gov­ern­ment, a sta­te­owned news­pa­per has said, end­ing more than a year of ne­go­ti­a­tions.

President Robert Mu­gabe’s gov­ern­ment last June threat­ened to seize half of Zi­mal­loys 39,175 hectares of min­ing ground, but the min­ing com­pany stood firm say­ing it should be com­pen­sated for the claims.

The Her­ald news­pa­per re­ported that Zi­mal­loys gave up the min­ing claims last month and was ne­go­ti­at­ing with an un­named In­dian in­vestor to re­cap­i­talise the com­pany. Of­fi­cials from Zi­mal­loys could not be reached for comment.

Zi­mal­loys, to­gether with Zi­masco, held 80 per cent of Zim­babwe’s chrome ore claims and Mu­gabe’s gov­ern­ment ar­gued that the com­pa­nies should sur­ren­der some of their ground to al­low more new in­vestors to mine chrome ore.

Zim­babwe holds the world’s sec­ond largest de­posits of chrome, which is smelted to pro­duce fer­rochrome, a raw ma­te­rial used in stain­less steel­mak­ing.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.