Zimbabwe says foreign firm takeovers start with mines

By Nelson Banya

HARARE (Reuters) - Zimbabwe's controversial policy of transferring majority control of foreign-owned firms to black Zimbabweans will begin in the key mining sector, a minister said on Tuesday.

Under regulations which took effect on March 1, the companies must submit plans to show how they will sell 51 percent of their shares to black Zimbabweans within five years.

The laws have divided the fragile unity government formed last year by Mugabe and Prime Minister Morgan Tsvangirai, who said they were issued without consulting the cabinet.

"I am happy to announce that government has unanimously decided that implementation of our indigenisation policy starts with the mining sector," Youth, Indigenisation and Empowerment Minister Saviour Kasukuwere said after a cabinet meeting.

The world's two largest platinum miners, Anglo Platinum and Impala Platinum, have multi-million dollar investments in Zimbabwe, while Rio Tinto has gold and diamond interests.

Kasukuwere said the government had taken note of proposals by Zimbabwe's Chamber of Mines for lower thresholds of local ownership.

"Government will now engage the mining sector so as to come up with a consensus position," he told journalists. "Sectoral discussions will decide issues of timeframes (for compliance) as well as thresholds."

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