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opens in the resort town of Victoria Falls on Thursday.
Over 200 local and foreign delegates are expected to converge on the resort town for the three-day event and proffer ideas on how Zimbabwe could shed its risk tag to enable local firms to secure foreign capital.
Addressing a Press briefing ahead of the AGM Chamber of Mines president Mr Victor Gapare said if the perceived indigenisation-related risk issues were not addressed local firms would not be able to raise funding.
Minister of Mines and Mining Development Mr Obert Mpofu will be the guest of honour while Morgan Stanley (investment division) managing director Dr Heinz Pley will deliver the keynote address at the AGM.
Minister of Finance Tendai Biti, Economic Planning Minister Tapiwa Mashakada, Eurasia Group analyst Ms Divya Reddy and mines permanent secretary Mr Thankful Musukutwa will join several other high-profile delegates from Government, commerce and industry.
Mr Gapare said the mining sector requires an estimated US$6 billion over the next five years for retooling and raising production to optimum levels.
But most foreign investors have remained largely sceptical about investing in Zimbabwe largely because of indigenisation-related concerns.
This stems from the Indigenisation and Economic Empowerment Act, which requires indigenous people to hold at least 51 percent in foreign firms with net asset value above US$500 000 (US$1 million for mines).
“The issues we want to talk about include reducing the risk associated with Zimbabwe so that mining companies are able to raise capital.
“Over 65 percent of mineral rights are in the hands of black Zimbabweans and State institutions and these need to raise money to develop their mineral rights. If we do not look at the risk issues associated with Zimbabwe they will never be able to raise the money,” he said.
External investors view the indigenisation law as an expropriation statute, but Government insists the legislation seeks to bring previously disadvantaged locals into the mainstream economic activities.
He said the chamber sought to facilitate the creation of an environment that enables local firms to raise capital on foreign shores.
The mines representative body had proposed 26 percent direct equity holding by locals in foreign firms and that the balance adding to 51 percent be met through corporate social investment programmes.
Mr Gapare said a 26 percent direct equity threshold in foreign companies would allow the firms to accommodate workers in empowerment programmes and indigenise by listing on the local stock market.
Mining has now become strategic to Zimbabwe and is expected to anchor its economic recovery after a decade of instability, which retarded growth.
The mining sector is expected to grow by 33 percent this year and this is anticipated to underpin the country’s 9,3 forecast economic growth.
Gold output is this year projected to reach 13 tonnes, platinum 12 tonnes, coal 3,5 million tonnes and ferro-chrome is seen topping 160 000 tonnes. Significant output is also expected from diamonds and nickel.