Zimbabwe Wants Foreign-Owned Mining Companies Listed on ZSE
The government of Zimbabwe, in a bid to improve the country's fiscal liquidity situation, is demanding that foreign-owned mining firms have their primary listings in the Zimbabwe Stock Exchange.
Deputy Prime Minister Arthur Mutambara, addressing a mining stakeholders' forum last week, said it is highly unfair that the foreign-owned mining companies dig up the country's natural resources, and yet profits and earnings are banked elsewhere other than Zimbabwe.
"Mining companies should primarily list in Zimbabwe, which should help improve liquidity in the country," Mutambara said.
Mutambara also said Zimbabwe doesn't want companies to be banking offshore. "Money from mining should function as Zimbabwe's capital," he added, noting the arrangement ensures that capital yielded from mining activities would help ease liquidity challenges in the market.
Zimbabwe's mining sector is evolving into a dominant player in the country's economy, accounted for two-thirds of last year's exports. It is estimated it would contribute over 50 per cent of exports this year. It is expected to grow by 15.9 per cent next year.
There are only two foreign mining firms currently listed on the ZSE, BNC and Falcon Gold. Major mining firms such as Zimbabwe Platinum Holdings and Caledonia Mining Corporation, which operates the Blanket Gold Mine, were listed on the Australian Stock Exchange and the Toronto Stock Exchange (TSX), respectively.
New Dawn Mining Corp, which runs a number of gold mines in the country, is also listed on the TSX, while Metallon Gold, another major gold producer, is listed on the Johannesburg Stock Exchange.
Zimplats is listed on the Australian Stock Exchange.