Zimbabwe threatens foreign mining companies with take-over

Zimbabwe threatened Thursday to take over foreign mining companies that fail to hand over a majority stake to locals, as required by law, toning down an earlier statement that it was taking immediate ownership. Indigenisation Minister Saviour Kasukuwere said in a statement earlier Thursday that the state had taken majority shares in foreign mining firms which had not sold 51 percent of their equity to black Zimbabweans as required.
Kasukuwere later told AFP that the statement had been meant as a threat so as to encourage foreign miners to comply with the law forthwith. Zimbabwe passed laws two years ago requiring foreign companies to cede 51 percent of their shares to "indigenous Zimbabweans." The largest foreign miners in Zimbabwe have already reached deals with the government and should not be affected by the announcement.