WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-04-12 Time: 08:00:01 Posted By: News Poster
Harare – THE Chamber of Mines has expressed doubt that the mining sector could achieve the 40 percent growth predicted by Finance Minister Tendai Biti in the 2010 budget statement due various factors.
The chamber further made ominous observations noting growth prospects in mining were bleak, which dampens the overall economic growth forecast for the year.
Minister Biti had cited relaxed export proceeds surrender conditions, improved operating environment and improving global metal prices when making positive growth forecasts for mining.
Chamber of Mines president Victor Gapare cited a number of constraints to potential growth in mining among them the indigenisation law, ongoing amendments to mining laws and funding issues.
“It is very clear that we are not going to grow by 40 percent this year. Besides, the uncertainty has been worsened by the promulgation of indigenisation law and the sector has not had access to long-term finance for new projects or production expansion,” said Mr Gapare.
Most mines where either closed or put under care and maintenance in 2008 due to hyperinflation, stringent export proceeds surrender requirements and poor metal prices on global markets.
Mr Gapare pointed out that mines such as Bindura Nickel Corporation were still to re-open after facing challenges to secure fresh capital.
The economy, which dollarised last year, is suffering from acute liquidity crisis, lack of affordable external and domestic long-term capital.
Depressed production capacity in all sectors of the economy has constrained the country’s export capacity to generate significant revenue inflows.
Power deficits and supply inconsistencies have also weighed in to dampen growth prospects in mining and its contribution to the Gross Domestic Product has fallen to 2 percent from 9 percent in 1999.
The mines representative body said power interruptions have resulted in mines failing to operate for an average 250 hours every month.
Zimbabwe is facing a critical power deficit as only Kariba Hydropower Station, a 750-megawatt plant, is operating at optimal capacity while Hwange Thermal Station with almost a similar generation capacity has of late been averaging 250 megawatts.
“In fact, we will be very lucky if we grow at all,” said Mr Gapare.
Mr Gapare said as was the case last year, there still was a lot of foreign investor interest in the sector, but investors wanted to see finality to the ongoing amendments to the Mines and Minerals Act, as well as legislation governing indigenisation and empowerment.
He said it was critical for the country to settle down and bring finality to mining legislation as “we can’t always be reviewing laws”
“Recent laws are discouraging, for instance, our exploration fees were pegged at US$100 per month.
“It is outrageous. No where in the world does anyone pay that kind of money,” said Mr Gapare.
This, he said made exploration in Zimbabwe extremely expensive amid revelations that prospecting for minerals in the country costs US$24 million annually for a 20 hectare area.
Indigenisation and empowerment law and regulations have torched heated debate in the country and the Chamber of Mines contends that in its present form the legislation discourages investment.
The Indigenisation and Economic Empowerment Act requires foreign owned firms to cede 51 percent of their equity to indigenous people.
The regulations which became effective last month and spell out compliance procedures gave foreign-owned firms valued at more than US$500 000 — 45 days to submit compliance plans.
However, the regulations are being reviewed to address some of the major concerns raised by stakeholders.
Original Source: 
Published by the government of Zimbabwe
Original date published: 12 April 2010
Source: http://allafrica.com/stories/201004120105.html?viewall=1