A scramble for minerals in Zimbabwe

Times:

Robert Mugabe loves to blame hated colonialists for Zimbabwe’s plight, but his ruinous economic policies are likely to hand a new breed of modern-day City imperialists the opportunities of a lifetime. The resource-rich country is awash with untapped reserves of gold, platinum, diamonds, copper and a host of lesser minerals. Its game parks and wildlife offer undreamt of opportunities in tourism, especially with the 2010 football World Cup in neighbouring South Africa.

All are now available at bargain basement prices.

“This is the sale of the century. There are incredible bargains to be had,” David Coltart, a leading member of the Movement for Democratic Change (MDC), now a Senator, told The Times.

He said that while international donors hesitated to see how the power-sharing deal worked, private sector finance was the key to jump-starting a broken economy. “My view is that the mining and resource sector has the potential to turn this round very quickly. There are some amazing opportunities around,” he added.

With world commodity prices high despite the credit crunch, due mainly to demand from China and India, international mining houses, many based in London, have been itching to clinch deals in Zimbabwe. Many were held back by political worries, such as the threat by Mr Mugabe to take a 51 per cent share in all foreign companies, and bad publicity arising from doing business with his regime.

“The 51 per cent threat will go straight out of the window. This is an internationally endorsed deal. So long as the MDC has the key economic ministries, such as mining, the private sector will be here. We are about to see a new ‘Scramble for Africa’,” one local economist said. “Cecil Rhodes will be turning in his grave.”

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I think these folks are more optimistic than I. I don't trust Mugabe not to force a coup since he is still in control of the army and the thugs who never wanted to cede power. I see it as a very high risk investment.

The Telegraph thinks Mugabe has some other advantages under the agreement.

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