News / National
Essar deal must be revisited says Mpofu
19 Jun 2012 at 08:17hrs | Views
Mines and Mining Development minister Obert Mpofu says the Essar deal must be revisited because the Indian company will pay only $700 million for resources worth over $30 billion.
Mpofu said he will transfer mineral rights of iron ore to Essar only for actual value, as part of the conditions he wants observed on the deal.
He said iron ore reserves in Mwanesi near Chivhu, which are supposed to be controlled by Essar under the agreement, had a cumulative value of $30 billion.
He said he will not allow the minerals to be surrendered to Essar for no value in return.
Mpofu says Essar must not export iron ore and must rescind the 80-20% shareholding structure and comply with the country's indigenisation policy.
Mpofu added that the new shareholding structure was reaffirmed by Cabinet 3 weeks ago. Mpofu was giving oral evidence before the Parliamentary Portfolio Committee on Industry and Commerce.
Meanwhile, the Zimbabwean government will craft a new policy specifically to force Zimplats to hand over some of its idle claims, Mines minister Obert Mpofu told Parliament's Industry and Commerce Portfolio Committee yesterday.
He said the idle platinum deposits should be given to other private investors who can extract value for the nation and themselves.
He also said official communication had been made to Zimplats and his department was awaiting the platinum miner's voluntary compliance.
He said Zimplats is sitting on two thirds of the Great Dyke on land they could take up to 300 years to fully exploit at current rate, blocking potential investors into the country's platinum sector.
Mpofu said he will transfer mineral rights of iron ore to Essar only for actual value, as part of the conditions he wants observed on the deal.
He said iron ore reserves in Mwanesi near Chivhu, which are supposed to be controlled by Essar under the agreement, had a cumulative value of $30 billion.
He said he will not allow the minerals to be surrendered to Essar for no value in return.
Mpofu says Essar must not export iron ore and must rescind the 80-20% shareholding structure and comply with the country's indigenisation policy.
Mpofu added that the new shareholding structure was reaffirmed by Cabinet 3 weeks ago. Mpofu was giving oral evidence before the Parliamentary Portfolio Committee on Industry and Commerce.
Meanwhile, the Zimbabwean government will craft a new policy specifically to force Zimplats to hand over some of its idle claims, Mines minister Obert Mpofu told Parliament's Industry and Commerce Portfolio Committee yesterday.
He said the idle platinum deposits should be given to other private investors who can extract value for the nation and themselves.
He also said official communication had been made to Zimplats and his department was awaiting the platinum miner's voluntary compliance.
He said Zimplats is sitting on two thirds of the Great Dyke on land they could take up to 300 years to fully exploit at current rate, blocking potential investors into the country's platinum sector.
Source - Byo24News
