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Thread: President Mugabe’s plan - seize the foreign-owned mines

  1. #1
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    Default President Mugabe’s plan - seize the foreign-owned mines

    I wonder how much this will affect the metals market.

    Zimbabwe to seize mines while compensating banks


    President Robert Mugabe’s government plans to seize control of foreign-owned mines without paying for them as part of a programme to accumulate $7 billion of assets following his July 31 election victory, a minister said.

    The government will compensate bank owners as it takes control of their companies, Saviour Kasukuwere, the minister in charge of the programme to compel foreign companies to cede 51 percent of their assets to black investors or the government, said in an interview in Harare, the capital, Tuesday, Bloomberg reports. His comments echo a suggestion made by Mugabe earlier this year.

    “When it comes to natural resources, Zimbabwe will not pay for her resources,” Kasukuwere said. “If they don’t want follow the law that’s their problem.”

    Non-compliant mine owners risk losing their licenses, he said.
    Anglo American Platinum Ltd., Impala Platinum Holdings Ltd., Barclays Plc and Standard Chartered Plc are among companies that operate in the country. Other industries may have to yield smaller stakes to black owners, Kasukuwere said. Metals and minerals, including platinum and gold, accounted for 71 percent, or $719.9 million, in exports in the first four months of this year, the state-controlled Herald newspaper said, citing the finance ministry.

    The government and black Zimbabweans will take half of the value of assets it has identified in the economy, he said. The state empowerment fund has so far acquired about $1 billion in assets, he said.

    The government will open a new stock exchange to trade the black-owned stakes in the companies, he said. Trading at the Harare Stock Exchange, which would rival the Zimbabwe Stock Exchange, may start within 100 days of the new government taking office and will only be open to black Zimbabweans, he said.

    Investments in Zimbabwe will be protected by the government, as long as companies do not seek to exploit the country without its people benefitting, Kasukuwere said.

    “We want to welcome investors, as long as it’s in partnership with our people,” he said. “It’s a logical economic plan that has been put forward by our party for Zimbabweans to achieve greater benefits from their resources. Forty-nine per cent is a huge part of the cake.”

    The main index on the Zimbabwe Stock Exchange fell 2.2 percent Tuesday, adding to Monday’s 11 percent decline. Most banks in the country have stopped issuing new loans because of concern over policy, two chief executive officers said Monday, declining to be identified because they didn’t want to anger the government.

    Mugabe’s victory was announced on Aug. 3 by the Zimbabwe Electoral Commission.

    “Over the next five years Zimbabwe is going to witness a unique wealth-transfer model that will see ordinary people taking control of the economy,” Mugabe’s Zimbabwe African National Union-Patriotic Front said in a statement handed to reporters in Harare Tuesday.

    The measures will stymie investment, said Michael Kavanagh, an analyst at Noah Capital Markets in Cape Town.

    “To what extent does the Zimbabwe government interfere with operations? To what extent does it try to extract cash from those operations? Does it contribute its share of capital,” he said in an interview. “At this stage it doesn’t look to me like the Zimbabwean government has any intention of being reasonable.”

    http://businessdayonline.com/?p=1777

  2. #2
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    I think I read this one ...

    "Dogs of War" by Frederick Forsyth?

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    This shouldn't effect the metals markets as the export of metals should continue unabated. What it will most certainly effect is the distribution of the profits from those metals. No less than 51% will now return to the people who own the resources, and International Corps will be short an identical figure. That's gonna leave a mark.

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    Quote Originally Posted by Aetius Romulous View Post
    This shouldn't effect the metals markets as the export of metals should continue unabated. What it will most certainly effect is the distribution of the profits from those metals. No less than 51% will now return to the people who own the resources, and International Corps will be short an identical figure. That's gonna leave a mark.
    Mugabe signed his death warrant with this one. In the next 2 years, someone else will assume control of Zimbabwe. If it doesn't happen, I'll owe you a beer.

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    Quote Originally Posted by Miradus View Post
    Mugabe signed his death warrant with this one. In the next 2 years, someone else will assume control of Zimbabwe. If it doesn't happen, I'll owe you a beer.
    Hard to argue. These things so often turn out to be a mess with so much money and power changing hands so quickly. I'm assuming his "cut" will be used to placate the wannabees. But maybe not. Just the same, the Corps weren't going to surrender the last vestiges of colonialism voluntarily. It had to be done, as messy as it could be. Might end up like Chile, might end up like Venezuela. Might end up like Canada. Who knows?

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    "...the export of metals should continue unabated."

    I really doubt that. As with Venezuela and its oil, the coming exodus of skilled managers and the ensuing lessened productivity will reduce the exports in dramatic fashion.
    You're from BATFE? Come right in! I use all your fine products!

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    Quote Originally Posted by Desertrat View Post
    "...the export of metals should continue unabated."

    I really doubt that. As with Venezuela and its oil, the coming exodus of skilled managers and the ensuing lessened productivity will reduce the exports in dramatic fashion.
    I had not considered Venezuela, I had been thinking about how well they did with the farming.

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    This is Waay funny
    The mines and tourisim (plus the commie govt) are the only sources of income in the nation, everyone else is a "Happy Socialist"

    An Explicit Lesson in the 'joys' of Socialism.

    Keep in mind that "Social Justice" is an explicit part of the New SA Constitution (whites bear all burdens, financial, social, criminal) JUST LIKE Soviet Russia They will murder/genocide the Productive Class
    They swore, if we gave them our weapons, that the wars of the tribes would cease.
    “As a general rule, the earlier you recognize someone is trying to kill you, the better off you’ll be.”

    "You think a wall as solid as the earth separates civilisation from barbarism. I tell you the division is a sheet of glass."



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    And they will make a mess out of that. Look at whats been going on there.

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    Meanwhile, in Zimbabwe II, Eric Holder's Justice Department is attempting to take over Apple's online business.

    http://online.wsj.com/article/SB1000...925101514.html

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