News

April 06, 2009

African Consolidated Intends To Commence Gold Production In Zimbabwe Before The End Of This Year

By Charles Wyatt

On 9 February 2009 somebody called Andrew Cranswick bought 400,000 shares in AIM listed African Consolidated Resources. Andrew just happens to be chief executive of that company and he bought the shares just at the time when it seemed that Robert Mugabe and Morgan Tsvangirai might be able to rub along in a government of national unity in Zimbabwe. It was a whole month before the death of Susan Tsvangirai which, sad though it was , appeared to accelerate a constructive partnership between the Zimbabwe African National Union-Patriotic Front and the Movement for Democratic Change. No use rehearsing the level to which Mugabe has reduced this once great country, but it is worth pointing out that in 1975 Rhodesia, as it then was, enjoyed 5th position in the world league table of gold producers and it is now something like 35th.

The first sign that a bit of common sense is penetrating the legislature and the legislation can be gleaned from the fact that the Movement for Democratic Change, which has charge of the Ministry of Finance, has already made clear its intention to support mining. Companies involved will have greater freedom to pursue their activities and will be supported by certainty of tenure. As a result investors and institutions will feel safer when committing funds to projects. Even more important from...