THE Government will not compensate foreign firms for mining claims repossessed towards empowering indigenous Zimbabweans, a Cabinet Minister has said.

Mines and Mining Development Minister, Walter Chidhakwa, told delegates in Bulawayo during the launch of the $50 million fund to support industry and mines yesterday that mineral rights were vested in the State, which has the right to distribute wealth to its citizens.

The minister said there were lots of misconceptions that Government was seizing mining claims from foreign companies and that affected firms should be compensated. The concerns come on the back of consolidation of the diamond mining sector and the surrender of chrome mining claims by Zimasco and Zim-Alloys.

“There is a misconception that concessions which belong to companies are being taken from them. The Mines and Minerals Act in its first clause starts by saying the mineral resources of Zimbabwe vest in the State. The second clause says what investors get is a limited right to exploit the minerals, which may or may not be withdrawn and so the circumstances around, which mineral rights can be withdrawn are more to do with national good,” said Minister Chidhakwa.