Rio Tinto 'could close Zimbabwe mine'

Mining giant Rio Tinto may close a gold mine in Zimbabwe if government plans to roll out a new law concerning shareholdings go ahead, it has emerged.

Zimbabwean government officials have indicated that they could implement a law that requires mining firms to give part of their shares to the state and to local residents, Mineweb reports.

If the law comes into effect, Rio Tinto Zimbabwe may close down certain of its operations in the country to mitigate the consequences of this legislation, the website claims.

"It seems there will be no change in the pricing regime in the foreseeable future and further decisions about the mine's future may have to be made in light of the proposed empowerment laws," the company told Mineweb.

The bulk of Rio Tinto's global operations are located in Australia and North America, with other significant activity taking place in South America, Europe, Asia and South Africa.