Anglo American, the London-listed mining giant, said today that it was "reviewing all options surrounding the development" of its $400 million (£202 million) platinum mine in Zimbabwe.

The company's decision to press ahead with the Unki mine in central Zimbabwe has prompted outrage from politicians who claim it will provide support to the regime of President Mugabe.

Under pressure from politicians and from its own shareholders, Anglo said that it would review the project but did not want to abandon the 650 people working at Unki.

In a statement issued today, the company said: "Anglo American is deeply concerned about the current political situation in Zimbabwe and condemns the violence and human rights abuses that are taking place.

"The company is monitoring the situation in Zimbabwe very closely and is reviewing all options surrounding the development of the project."

The Foreign Office is investigating whether Anglo’s investment breached sanctions against Zimbabwe. Anglo insisted yesterday that its involvement in the country did not break the law.

The decision, which was criticised roundly as likely to give succour — and possibly money — to the Mugabe regime, is in stark contrast to the policy of nearly all other main British corporations in Zimbabwe. They are either withdrawing from the country or waiting for Mr Mugabe to be deposed before expanding their businesses.

Lord Malloch-Brown, the Foreign Office Minister, said this week that Britain could push for tougher sanctions against Zimbabwe and put pressure on companies doing business there to withdraw. The Government will also call a halt today to next year’s tour of England by the Zimbabwean cricket team.

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