Anglo American, the London-based mining giant, is to make what is believed to
be the largest foreign investment in Zimbabwe to date, just as the British
Government puts pressure on companies to withdraw from the country.
Anglo will invest $400 million (£200 million) to build a platinum mine in
Zimbabwe — a move that has raised concern among some of the company’s
shareholders and been condemned by politicians.
The Foreign Office was investigating tonight whether the company’s investment
breached sanctions against Zimbabwe. Anglo insisted 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.
International condemnation of President Mugabe and his regime intensified
today when the UN Security Council issued a statement condemning the
“campaign of violence against the political opposition ahead of the second
round of presidential elections”.
Despite the political concern about President Mugabe’s regime, Anglo American
is pressing ahead with its plans to build a mine at Unki, in central
Zimbabwe. The company employs 188 people and a further 450 contractors at
Unki and hopes to be producing platinum, one of the world’s most expensive
metals, by 2010. A spokesman for Anglo said: “We are developing the Unki
platinum project because we have responsibility to our employees,
contractors and the local community. We are keeping the situation in
Zimbabwe under close watch.”
Zimbabwe is rich in mineral resources and has the second-largest deposits of
platinum but most large miners are avoiding the country or have put their
investments on hold. Rio Tinto, the world’s second-largest miner, has a
small diamond mine in the country but said yesterday that it would not
invest further until President Mugabe was gone.
British American Tobacco, which makes Benson & Hedges cigarettes, and
Barclays Bank also have operations in Zimbabwe. Both companies said that
they would remain for the good of their local employees but neither would
expand there. BP and Shell jointly own a chain of petrol stations in
Zimbabwe and tonight said that they were reviewing their presence in the
country. The advertising agency WPP is selling its 25 per cent stake in a
Zimbabwean media company part-owned by one of Mr Mugabe's relatives. The
agency is understood to be desperate to offload the stake and willing to
sell at any price.
Almost no large investments have been made in Zimbabwe for years over
uncertainty about the Mugabe regime. Anti-Mugabe campaigners said that the
Anglo investment was likely to be the largest ever in the country.
Some of Anglo’s shareholders said that they would raise the investment with
the company amid concern that it may breach pension fund ethical guidelines.
Legal & General is Anglo’s largest single shareholder with about 5 per
cent of the company. A spokesman said: “We have a corporate and social
responsibility policy and that overrides all investment activity. We do
engage with companies to ensure they act in an appropriate fashion.”
The mine plan provoked a chorus of condemnation. Roy Bennett, treasurer of
Zimbabwe’s opposition MDC party, said: “Any company doing business in
Zimbabwe is keeping that regime alive. Anglo American is complicit with the
regime as whatever they are doing in Zimbabwe has the endorsement of the
regime. The money they invest is a lifeline to the politicians and
government of Zanu (PF).”
Ed Davey, the Liberal Democrat foreign affairs spokesman, said: “Such an
investment could only bolster this discredited evil regime and shows how
pathetic the current sanctions regime is. It must now be time for the UN and
EU to get serious about sanctions. If Anglo American go ahead with this, it
will be the worst mistake in their history and the biggest PR disaster
imaginable.”
Peter Luff, Conservative chairman of the Business and Regulatory Reform Select
Committee, said: “This is a curiously bad investment. Robert Mugabe may
interpret this move as a vote of confidence in himself. How can a company
possibly satisfy itself that this investment will be seen truly ethical in
its nature at this moment.
Zimbabwe will change and those who will be seen to have supported the old
regime may in the long term pay a heavy price for that decision.”
Kate Hoey, chairwoman of the all-party Zimbabwe group, said: “Clearly this is
not a time for any British company to be investing in Zimbabwe.”
William Hague, the Shadow Foreign Secretary, said: “Companies investing in
Mugabe’s Zimbabwe . . . should examine their consciences very carefully. No
British or international company should in any way help to prop up the
regime, whether by an investment in Mugabe’s Zimbabwe or by any kind of
dealings with it.”
Peter Hain, the former Work and Pensions Secretary, urged the company to put
the investment on hold. “It’s unacceptable to be handing this to Mugabe on a
plate at a time that mini-genocides are happening across the country.”
Earlier Mr Davey said in the Commons that British companies were operating
through subsidiaries in Zimbabwe. He asked what ministers were doing to end
the “scandalous situation where a British bank, namely Barclays, still
bankrolls Mugabe’s thugs by operating through a local subsidiary, thereby
bypassing EU sanctions”. This was, he said, an insidious loophole that
flouted the spirit, if not the letter, of the sanctions against the Zanu
(PF) hierarchy.
Barclays said that it complied with all European Union sanctions.
David Miliband, the Foreign Secretary, said: “I condemn anything that gives
succour, either financial or moral, to the Zanu (PF) leaders.” He was not
aware, however, of any British company breaking sanctions and added that
companies operating in the country could offer employment and support for
ordinary Zimbabweans as well as succour for the regime.
Andy Burnham, the Culture Secretary, is to write to the England and Wales
Cricket Board (ECB) stating that the Government will not allow the
Zimbabwean team into the country. This means the tour is off and the ECB
will not face compensation claims from the International Cricket Conference
(ICC) for pulling out. Mr Burnham will also urge the ECB to begin moves to
exclude Zimbabwe from next year’s Twenty20 World Cup in England.
African mineral riches
— Anglo American was founded by Sir Ernest Oppenheimer in South
Africa in 1917. Oppenheimer had already taken over De Beers, the diamond
corporation, from Cecil Rhodes, who founded the country that became Zimbabwe
— Anglo still owns 45 per cent of De Beers and is the
fourth-largest mining company in the world
— The company’s headquarters are just off Pall Mall, Central
London and is listed on the FTSE 100. It employs 162,000 people worldwide
— It is being sued over working conditions in South Africa during
the apartheid era. Miners claim that they were treated as slave labour, The
company denies wrongdoing
Source: Times database
It will be hard to say how much of this investment will go to the people of Zimbabwe. Corporations must make a profit, but certain political situations as the one in Zimbabwe, sometimes call for prudence.
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Louis ONeill, New York City, USA
It is remarkable how many "supporters" Mugabe has.. He has almost destroyed the economy leaving most Zimbaweans dirt poor, and now in calling for sanctions these "supporters" want to finish the job and make sure they starve.. Anglo American will be helping many Zimbabweans to a better life.
Derek Tommey, Cape Town, South Africa
I'm not sure that any of the three comments above is helpful here. We have to deal with the reality of the company concerned (sanctions?) and the law (make it work better) if we are to make anything of this foolish decision, as a nation.
rwgray, Brighton, UK
Anglo will create jobs, pay taxes and boost growth: exactly what Zim needs. You can be sure that, exposed to the glare of media and investors, it has far higher social and environmental standards than Chinese competition. Don't just criticise! Make Anglo use their influence to be a force for good
James schofield, Amsterdam, Netherlands
Just three words to describe how I felt: :"Boycott London Olympics"
gulkav, Columbus, USA
We used to berate the Germans for allowing death camps.
Doesn't that now smack of hypocrisy?
Ken.Wyatt, Todmorden, UK
Advice to Anglo, are you prepared to have your interests seized by Mugabe? There are no more farms to seize mind you! Mines are next. The ordinary man's salary won't help much. There is no food to even buy. He is suffering already with or without your investment. Don't justify your greed for money!
Lewis, Bindura, Zimbabwe
'Some control'! Sue? The secret is out. The West's only interest is to install a stooge President to continue to suck Zimbabwe's riches including platinum and land! It has nothing to do with human rights and genocide. Chinese are exploiting oil in Darfur that's why the West's media is quiet!
Simon Namnyak, London, England
Not surprising given Anglo made a mint on back of Apartheid too
The mega giants have no political or moral standing ,it is all about la lucre the more the better , and locals in 3rd world hardly get to benefit from their presence there. Slave wages do not cut it.
D McGregor, St Mawes, UK
Everyone who thinks bling culture is glamorous should be made to read this article
Luke, London, UK
A full list of companies and countries providing cash, weapons and logistical support to the Mugabe regime should be drawn up and published. Unscrupulous big nations and companies who are complicit with Zanu PF in Zimbabwe should be fully exposed to international criticism, named and shamed.
Colin , Carmarthen, UK
Investment is exactly what Zimbabwe needs, if I had money I would invest in that country, creating jobs & training & improving education. But what stagnates Africa is lack of investment, and lack of fair trade. & Santions by the west when they want to get rid of leaders. Deal with Dafur.
Daphne Kenward, Cambridge, UK
Ran, York, UK I agree with you. The west has this mentality: I am ok you re not ok. I can do it you cannot. Expanded it means We can sell arms you cannot, we can invade you cannot, we can invest you cannot, we can have nukes you cannot, we can commit abuses you cannot, etc etc etc
Lim, Johor Bahru, Malaysia
I am sure fellow Zimbabweans and morally minded people the world over would agree that strict sanctions should be imposed not only on Zimbabwe but those countries that support the regime - such as Malaysia where Mugabe has stashed his cash and South Africa. All those in favour tell your local MP.
Nikki Brown, London & Harare, UK & Zimbabwe
WE need foreign investment , not military intervention, we as zimbabweans dont want peopel invading our country, only a white zimabwean would want that
jason nel, luton, uk
Well, why do UK and USA governements not go in Zimbabwe in the name of democracy. They have done it twice when invading Iraq.
The answer is clear. In Zimbabwe there is no oil so they will only talk and do nothing just as they did nothing in Bosnia and Srebrenica during the war.
Mark, London, UK
Present political instability is Zimbabwe poses a big risk for any investment, esp. such a massive investment by Anglo. Clearly, it is potentially an instrument to fuel the prolonged existence of the ZANU regime. Anglo, retrace your steps. As for cricket, please let's separate sport from politics!!!
james, nottingham, uk
As a little man I cannot do much but everybody could do something... I for instance am going to close my account with Barclays Bank and open one with a Bank that does not support this brutal military rule fronted by a desperate old man.
thomas, madrid, spain
Come on folks! Wake up - money always rules over so-called "morality": look at the oil companies during UDI...
Are you REALLY surprised at this? I suggest you all read "Rule By Secrecy" by US journalist Jim Marrs.
Gerry Watts, Hobart, Tasmania, Australia
How long is the world going to sit by and do nothing? How long do we let these people suffer at the hands of a mad man while companies such as Anglo American reap the benefits of a corrupt government. We have all failed as human beings and we have failed the people of Zimbabwe!!!
Matthew Nash, London, UK
Now it is clear. UK's interest in Zimbabwe is not about human rights, democracy, rule of law etc. It is about control of resources. Old Man Mugabe is right after all!
Mwoyo Chirandu, Harare, Zimbabwe
Jacob Zuma Yesterday condemmed the Zim Govt, and added that the ANC does not agree with Mugabe and his cronies.
Mbeki has no credentials left in our country. Interesting to see all the nations, Who supported the ANC, now condem them.
You have no idea what it is like living here, but yet ......
curns, Paulpietersburg, South Africa
The British need to do something useful.
Why not call together all the major British firms in Zim, invite the major SA, Aus and USA firms (you have embassies there for a reason). Add the German bank note printers.
And ask them what they are going to do?
Ask Tutu to chair it to keep it clean.
Jo, Olney, Uk
At last, the truth is out. So it is all about investments in the mining industry and not about free/ fair elections, human rights, the rule of law etc. There is also an acknowledgement that tacit sanctions have been applied to Zim by British Companies mothballing their operations.Interesting times!
Davis, Manchester,
Surely it must be possible to seize the funds held by these thugs outside of Zimbabwe. As per Nazi gold etc? Rather than sanctions that effect the ordinary people. What funds their life styles? Are those funds held in Zimbabwe dollars? I suspect not.
David, Cork, Ireland
It is clear from their inaction, that Zimbabwe's African neighbours are not going to intervene, so one assumes they find the situation there acceptable. The moribund UN does nothing. Western nations with the capability to, won't intervene, so this story is going nowhere. Just handwringing all round.
David Jones, San Diego, CA, USA
The real problem here is that if Anglo-American don't make the investment the Chinese will!!! Which is worse? If terms are very carefully negotiated - VERY carefully - surely it's better we have some control.
Sue Shaw, Morpeth, UK
As a FTSE100 shareholder I woud love to see the risk assessment for this. But there again I woud have loved to see the risk assessment prepared for the directors of Northern Rock.
Andrew, Jakarta, Indonesia
Anglo America is not a British company; it is a company started by Sir Ernest Oppenheimer who founded the Anglo American Corporation, a gold mining company, in 1917. While it has moved its head office to London for Stock Exchange on reasons it does little to no business in the UK .
Lloyd, London,
Greed and vanity rule this Earth.
What remains is seldom worth
platinum rings or circuits bred
not to raise but eat the dead.
john Carroll, Richmond Virginia, USA
so pathetic,it is ordinary people eventually suffer the results of political scandals
liang wang , jsz, hk
Bruce, Eureka, USA:
"It will be the rape of a countries natural resources"-Just like Iraq? Nice to see the "human rights" weapon was fully invoked to carry this out.2 months ago the MDC won the election; Anglo-American quickly set up shop,when Mugabe struck back they kept the deal,$s is what counts
Brundi, Ho Chi Minh City, Vietnam
It is so sad to see a courageaous people stand up against a thug and have a company like Anglo-American laugh in their faces. Is anyone foolish enough to think money from this will go to the people of Zimbabwe? It will be the rape of a countries natural resources and the money in Swiss accounts.
Bruce, Eureka, U.S.A.
this beggars belief
grindles, London, england
aha! thus it is revealed why the "liberation" bandwagon has suddenly rolled into town...much as it did into WMD/Crude Oil burdened Iraq....
patrick , Hague, Netherlands
After reading all the comments here, i don't know how people will comment if it is a Chinese company rahter than Anglo American. No doubt, BASHING China . Oh, no, if it is a Chinese company, this news should have been unveiled for two months, even if the deal was made last year. Btw, I like platinum
Ran, York, UK
Just maybe Anglo American has seen the writing on the wall for Mugabe and his regime, any investor knows its best to get in early while everybody else says what a bad decision is being made. Unless Mugabe is immortal which is doubtful.
John Williamson, Liverpool,
John, Atlanta, GA
Robert Mugabe is the saviour of the nation? The large Chinese presence in Zimbabawe is, of course, because of their well known record on human rights and support for democracy.
Supplying arms to a repressive regime is just their way of demonstrating those beliefs.
Bernard, Edinburgh, Scotland
Unbelievable! The LSE should suspend trading in Anglo-American shares pending an investigation into its activities and whether they breach sanctions.
Alastair, Rye, UK
I ask you fellow Zimbabweans, is this what you want ? For there to be no economic activity at all in Zim, for our relatives to continue to suffer and lose all dignity so that Tsvangirai can rule ? Only non-Zimbabweans call for militiary intervention and more sanctions.
Roger Ndaba , St Albans, UK
To make this investment now is a callous and unfeeling act. But when Zimbabwe gets out of the Mugabe era, jobs are going to be needed. Zimbabwe has always had minimum wage laws, maningless though they are at present, and any jobs are better than no jobs. Investment and jobs are not recolonisation.
David Ashton, Bathurst, Australia
Sanctions affect real people. Look at the ethnic communities in your country, the people who look after your elderly and clean your offices etc evry minimum wage penny they make is remitted to help the suffering back home - sanctions just squeeze them more and that does not benefit Zimbabwe.
Roger Ndaba , St Albans, UK
Now we know why British establishment is up in arms for the Zimbabwe. It is not for faire elections or democracy, as their propaganda machine pretends, in reality it is to liberate and plunder the Zimbabwe’s rich Platinum mines and other natural resource, as in old days before their independence.
John, Atlanta, GA
It is extremely difficult to imagine a company choosing this time to make a major investment in Zimbabwe. Whatever can the directors be imagining? especially since a few years' delay makes no change to the value of the ore in the ground.
Peter Burpee, Kingston, ON, Canada
Mugabe is banging on about recolonisation if the MDC ever achieves power. How does this anti-imperialist reconcile doing business with Anglo an off shoot of Cecil Rhodes operations & oppressor of citizens of SA & his name sake country Rhodesia (Now Zimbabwe)?
I mean Robert give it up for Lent!!
Jason Pearson, Toronto, Canada