Tendai Chishiri.
Harare, Zimbabwe. (News Of The South) – Caledonia’s Blanket mine near Gwanda in Zimbabwe has generated more than US $50 million since it reopened in 2009 with the community trust acquiring its 10% stake at no cost.
Blanket mine is expected to peak its government revenues in the early 2020s at under US$20 million per year, a case study for the mining company has established. With $15 billion amiss in the diamond mining sector, the case study reiterates the need for the citizens of Zimbabwe to have as much of a right as Caledonia’s investors to know the terms under which their natural resources are being exploited.
As part of improved governance in the mining sector, the government should publish revenue payments made by mining companies on annual basis.
The case study reported that it is not commercially sensitive and contract disclosure in other jurisdictions has demonstrated that it increases trust between governments, citizens and companies.
The case study was conducted by Resources for Development Consulting with Don Hubert as the president. The firm seeks to assist citizens in resource rich developing countries to secure a fair share of extractive sector by analyzing contracts and broader fiscal regimes and conducting integrated economic analyses in order to asses plausible government revenues.
The Blanket mine was the first in the country to complete the indigenization process. Caledonia owns 49% with the remaining 51% divided among; Gwanda Community Trust10%; Blanket Employee Trust10%; The National Indigenization and Economic Empowerment fund (NIEEF) 10% and Fremios 15%.
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