The Moti Group will consider selling shares of its Zimbabwean chrome mining operations, if the government pushes ahead with the proposal that has already met resistance from the country’s biggest platinum producer, Impala Platinum Holdings Ltd.
Zimbabwean policymakers are debating a bill that will oblige mining companies to list the majority of their shares on the local exchange or risk losing their mining rights.
Contesting the proposal, Impala Platinum Holdings Ltd., the owner of Zimplats, said earlier this month the proposals will strangle investment and growth in the industry.
Nonetheless, the Group, which is planning to double its investments in Zimbabwe to $500 million as the economy opens up following Mugabe’s resignation in November, doesn’t expect the government to implement the proposals because this would fly in the face of its efforts to attract investors.
“Looking at the current state of affairs in the country, we believe it is unlikely that the government would prescribe such a matter, particularly as they are committed to focusing on investment instead of regulation,” the Moti Group said.