Zimbabwe is poised for strong earnings growth and strategic exploration of its platinum metal resources, a senior mining official has said.

The news came after the board of Zimplats, the largest platinum producer in the country, agreed to cede mining rights to the government.

According to the official, Zimplats' recent moves will see platinum production rising from the current 90,000 ounces per year to 160,000 ounces annually, while nickel production will increase from 1,540 tons to 2,900 tons annually.

A fortnight ago, Implats, the parent company of the local platinum mining concern, approved the release of 36 percent of the company's resource base in the Great Dyke worth 153 million U.S dollars, making the cumulative resources committed by Zimplats over the past couple of months worth 411 million U.S. dollars.

"The undertaking that has been made by Zimplats is a noble one and it represents an ominous move that suits our attempts to further promote indigenization programs and to allow joint venture exploitation of the minerals in the country," the official said.

The Zimbabwe government is in the process of consulting with stakeholders in the mining sector with a legal framework that is oriented to enable the country to retain much of its mineral wealth.

The authorities have noted that the government is willing to work with a model to facilitate 50-50 percent shareholding in mining companies, or alternatively a 51-49 percent ownership.

Source: Xinhua