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Important new bills....
Parliament Online have now uploaded important new bills that have been the subject of much discussion in the media. You can view new material here.
Due to the unreliable nature of the Parliament website, I have uploaded the individual bills for New Zambia readers.
Mines and Minerals Development Bill 2008 - An Act to revise the law relating to the prospecting for, mining and processing of minerals; and to repeal and replace the Mines and Minerals Act, 1995.Mines and Minerals Development Bill 2008
Income Tax Bill 2008 - An Act to amend the Income Tax Act, with new provisions for mining windfall taxes etc.
Income Tax Bill (Amendment) 2008
Customs and Excise (Amendment) 2008 - An Act to Amend the Customs and Excise Act, with new measures that will apply a 15% export levy on copper concentrates, from the beginning of April 2008.
Value Added Tax 2008 - An Act to amend the Value Added Tax Act as laid out in the Budget.
4 Comments:
25% without compensation
Aussie miners hit as Mugabe nabs 51pc
Andrew Trounson | March 11, 2008
AUSTRALIAN miners in Zimbabwe such as Rio Tinto and Aquarius Platinum face having to give up 51 per cent of their projects after President Robert Mugabe reportedly went ahead with plans for legislation requiring foreign and white-owned mines and businesses to be 51 per cent owned by black Zimbabweans.
The move means a $US270 million ($291.4 million) expansion of Rio Tinto's relatively small Murowa diamond mine could be permanently on hold, and there is speculation that the Anglo-Australian miner could sell out completely.
Rio declined to comment yesterday.
Shares in Aquarius, which has 50 per cent stake in the Mimosa platinum mine in Zimbabwe, dropped 8 per cent, reversing recent strong gains from rising platinum prices.
Aquarius, which is listed also in London and Johannesburg, is partnered at Mimosa by South African platinum giant Impala.
Miners last year rated Zimbabwe as the worst country in which to do business, according to Canadian researchers the Fraser Institute.
But while established miners are set to suffer in the wake of the new laws, the allure of Zimbabwe's gold and platinum riches is still tempting some Australian explorers to have at least a look around. Last month, Sydney-based Hillgrove Resources sent an executive over to Zimbabwe to look at some gold prospects that have been offered up to it, and it is now mulling them over.
"We're having a look at a few opportunities there at the moment, partly in the basis that it can't get any worse (in Zimbabwe)," managing director David Archer told The Australian.
But explorers aren't exactly beating down the doors.
Mr Archer said he wasn't aware of any other Australian explorers looking over Zimbabwe.
According to Zimbabwe's Sunday Mail, Mr Mugabe, 84, has signed the Economic Empowerment Act into law ahead of March 29 elections.
The law requires "indigenous Zimbabweans" to hold a minimum 51 per cent stake in every business and public company, and to have a controlling stake in every investment or company merger.
But there appears to be some wiggle room with the newspaper reporting that the Government can use its discretion to approve different shareholdings.
Zimplats, the country's single biggest platinum producer, will be hoping to be exempted after having committed to spend $US1 billion on a program to double its production there.
Zimplats is 86 per cent owned by Impala, but has a residual Australian listing after being spun out originally from Delta Gold.
"At this stage we don't know how it affects Zimplats, so it is business as usual," Zimplats spokeswoman in Sydney, Kathrine Brown, told The Australian.
Zimplats, through Impala, appears to have a strong bargaining position to resist nationalisation since all its production needs to be refined at Impala's operations across the border in South Africa.
With platinum refineries few and far between, the only other realistic alternative would be for Zimplats to try to ship production to China for refining, but that would require an upgrade of transport infrastructure inside the country.
Under the country's draft Mines and Minerals Amendment Bill, miners will have to give up 25 per cent of their projects without compensation.
A further 26 per cent would also have to be transferred to indigenous interests, but these would be paid through foregone dividends spread over seven years.
Australian Trade Commission chief economist Tim Harcourt said that Australia's trade and investment with Zimbabwe was "pretty minimal," with South Africa making up the bulk of Australia's trade with Africa.
http://www.theaustralian.news.com.au/story/0,25197,23352812-643,00.html
Thanks Cho . Maquis
Congo quizzes mining groups in licence review
Charlotte Mathews
Posted to the web on: 11 March 2008
Resources Editor
MINING groups operating in the minerals-rich Democratic Republic of Congo were given until the end of last month to respond to shortcomings in the mining licences they were granted under the previous dispensation.
Most companies told their shareholders they were already complying with the requirements identified, and would respond to the government. But a few were hit harder, and said they would be engaging the government in talks.
Fairfax resources chief John Meyer said the Congolese government had not been particularly investor friendly with companies such as First Quantum and Moto Gold Mines, and it was likely there would be continuing issues.
First Quantum was one of the companies worst hit, with some assets in “category C”, implying the possibility of losing the assets altogether. There could be a modest reduction in First Quantum’s ownership of the Kolwezi project, Fairfax said in a note to clients a week ago .
The share prices of the mostly copper-focused listed companies operating in the Congo have been underpinned by buoyant copper and cobalt prices this year, offsetting uncertainty on the outcome of the mining licence review.
The licences of two JSE-listed companies, Teal Exploration & Mining and Metorex, both with copper projects in the Congo, came under the spotlight.
Teal said in relation to its Kalumines property, which was 60% owned by Teal and 40% by the government’s minerals body, Gécamines, the Congolese government had asked for the feasibility study on the project and for its social plans. It also asked that Gécamines should participate in the daily management of the company.
Teal said it was in phase one of development of the property, which was building up to output of 25000 tons of copper a year, and was busy with a study on expanding this to 40000 tons of copper cathodes.
The group said its social programmes included providing water and medical services , upgrading roads and contributing to infrastructure projects in nearby Lubumbashi. It also said it had recently appointed a Gecamines employee as a senior member of its Kalumines team.
Teal was confident all challenges could be addressed .
Metorex said it had been asked to submit the original feasibility study for Ruashi to clarify the fairness of the split in the proportion 80% to Metorex, and 20% to Gecamines. It had also been asked for a description of its social programmes and of Gecamines’ day-to-day involvement in Ruashi.
Metorex said it was active in social and community involvement, and welcomed Gecamines’ participation in daily management. It believed Gecamines’ interest was equitable.
Other companies, such as Anvil, Katanga and Camec, were also asked to submit social plans and feasibility studies or improve financial terms of agreements.
Maquis
and there is speculation that the Anglo-Australian miner could sell out completely.
Sounds familiar, doesn't it?
A further 26 per cent would also have to be transferred to indigenous interests, but these would be paid through foregone dividends spread over seven years.
What are 'foregone dividend payments'? Do they mean that these companies somehow haven't been paying dividends? :>
and there is speculation that the Anglo-Australian miner could sell out completely.
And if Zimbabwe is such a terrible place to be, and there is 100,000% inflation...
Why haven't they left already? Charity? Or the cold hard cash that is still to be made in Zimbabwe!
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