Zimbabwe Needs to Reconsider Mining Contracts

14 December 2010 (Last Updated December 14th, 2010 18:30)

Zimbabwe needs to reconsider some of the mining contracts it has signed, according to the Zimbabwean Parliamentary Portfolio Committee on Mines and Energy. Committee chairman Edward Chindori-Chininga told NewsDay that the government is not benefiting from the deals with most of big mines

Zimbabwe needs to reconsider some of the mining contracts it has signed, according to the Zimbabwean Parliamentary Portfolio Committee on Mines and Energy.

Committee chairman Edward Chindori-Chininga told NewsDay that the government is not benefiting from the deals with most of big mines and needs examine some of the mining contracts and fiscal arrangements it has signed with mining companies such as BHP.

Lot of mines in Zimbabwe are banking their profits outside the country, which is lessening the chances of the nationfrom benefiting from its mineral resources.

Moreover, measures are needed for all mines to purchase mining supplies and equipment through Zimbabwean firms producing supplies locally or operating under franchise agreements.