VICTORIA FALLS – Zimbabwe's President Robert Mugabe said on Friday the government would not expropriate mines and was refining a controversial local ownership law to enable miners to expand their operations.

The government early this year published rules forcing foreign-owned firms, including mines and banks, to cede 51% shares to locals, a move which divided the coalition administration and spooked investors.

"The implementation of the empowerment initiative will take cognisance of the need to promote growth of the mining industry," Mugabe told an annual mining conference.

"Accordingly, mechanisms are being refined to ensure that investors find it attractive to expand current operations and bring in new investment into the country."

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