Ben Turney
@Ben_Turney
I’ve just posted the following statement on one of the main WhatsApp channels for the mining sector in Zimbabwe
@Mining_Zimbabwe
Following the MoM policy change on 22 May, which banned foreign ownership of what the MoM deemed to be small and medium scale mining, I have just received official confirmation from
@zidainvest
that the licence application for one of the projects I have been working on has been rejected.
This is not a surprise, but has far reaching implications for exploration in Zimbabwe.
For this particular project I had arranged $1.2m in legitimate foreign investment to fund a drill and mine development program to bring a mine back to life. This is a small investment amount in global terms, but is the kind of investment Zimbabwean mine owners badly need many, many hundreds of times over.
It is exceptionally rare for exploration projects around the world to attract $15m in immediate start-up investment (and I do mean EXCEPTIONALLY rare). As it stands, the new threshold effectively stops ALL foreign-backed exploration in Zimbabwe.
For what it is worth, I do not believe this was the intention of the policy, but the lack of consultation has severe consequences as Zimbabwe strives to become an upper-middle income economy, led by the immense potential in the mining sector.
I am very conscious I am a guest in this country. I am a strong believer in self-determination for all nations.
If Zimbabwe does not want people like me to be here that will be a very sad outcome, after nearly 4 years of hard work that has created hundreds of jobs, introduced modern technologies to the country and brought in millions of dollars of positive Foreign Direct Investment.
However, if that is how it has to be then so be it.