Zimbabwe Seeks Greater Mining Equity With 26% Stake in Projects
TLDR
- Zimbabwe plans to acquire a 26% free carry stake in new mining projects and negotiate with existing operators to secure similar ownership
- The move is part of a broader strategy to increase the country’s share of profits from its mineral resources
- The policy, set to take effect in 2025, aligns with rising resource nationalism in Africa, where nations aim to address historical imbalances in mining wealth distribution
Zimbabwe plans to acquire a 26% free carry stake in new mining projects and negotiate with existing operators to secure similar ownership. Secretary for Mines Pfungwa Kunaka said in an interview with Bloomberg that the move is part of a broader strategy to increase the country’s share of profits from its mineral resources.
The policy, set to take effect in 2025, aligns with rising resource nationalism in Africa, where nations aim to address historical imbalances in mining wealth distribution. Zimbabwe mines several key metals, including gold, platinum, lithium, and chrome, with operators like Zimplats Holdings, Anglo American Platinum’s Unki mine, and RioZim.
Kunaka did not specify the financing mechanism for acquiring stakes in existing projects or the minimum value threshold for assets targeted under the policy. He emphasized the need for negotiations with current investors to implement the framework. The government holds a 15% free carry stake in Karo Resources, a platinum mining venture.
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Key Takeaways
Zimbabwe’s planned stake in mining projects reflects a growing trend across Africa to increase local ownership of natural resource profits. Neighboring nations like Tanzania and the Democratic Republic of Congo have enacted similar policies, signaling a shift toward resource nationalism. While Zimbabwe has vast mineral reserves, including some of the world’s largest lithium deposits, the policy could raise concerns among investors, particularly regarding the financing of stakes in established operations. Kunaka noted that the government will prioritize negotiations rather than unilateral actions to implement the framework. The outcome of these negotiations will determine the balance between securing local benefits and maintaining investor confidence, particularly as global competition for critical minerals intensifies. For operators, compliance with the policy could hinge on clarity around implementation and the financial implications of the government’s shareholding ambitions.
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