Last checked at 
* "Indigenisation" strategy targets foreign mines, banks
* Mugabe rejects criticism of his disputed re-election
* Praises armed forces as "reliable pillar" of his rule
By Cris Chinaka
HARARE, Aug 13 (Reuters) - Zimbabwe's President RobertMugabe said on Tuesday he saw his victory in last month'selection as a mandate for "total" application of policiesforcing foreign-owned firms to sell majority stakes to localinvestors.
Addressing a Defence Forces Day rally, Africa's oldestleader at 89, maintained a belligerent defence of hisre-election on July 31, which is being challenged in court asfraudulent by his main political rival, Morgan Tsvangirai.
Rejecting this challenge along with questions by Westerngovernments about the election's credibility, Mugabe said hisnew five-year term extending his 33 years in power gave him thechance to enact what he called the last chapter of a fiercelynationalist economic strategy.
His so-called "indigenisation" policy seeks to redistributewealth by forcing foreign-owned firms to sell at least 51percent to black Zimbabweans.
The local operations of the world's two largest platinumproducers, Anglo American Platinum and Impala PlatinumHoldings , have already been targeted by thispolicy, and foreign-owned banks are also seen as likely targets.
London-based Standard Chartered and Barclays are among the banks in Zimbabwe.
"Now that the people of Zimbabwe have granted us aresounding mandate in the governance of the country, we will doeverything in our power to ensure that our objective of totalindigenisation, empowerment, development and employment isrealised," Mugabe told the rally of both civilians and soldiers.
"This is our final phase of implementing the ideals of theliberation struggle," he added, without offering more details.
His pledge of more forceful application of a nationalistagenda offered little comfort to foreign investors, who havebeen hoping Zimbabwe can build on a fragile economic recoveryseen under a unity government since 2009 made up of Mugabe'sZANU-PF party and Tsvangirai's Movement for Democratic Change.
The MDC filed a legal challenge on Friday in theConstitutional Court, calling for a re-run of the election onthe grounds it was riddled with fraud and irregularities.
Zimbabwe's constitution says the top court must rule within14 days. Analysts predict the MDC challenge is unlikely toprosper because they say Mugabe's ZANU-PF party dominates thejudiciary and state institutions.
Tsvangirai and his party boycotted the Defence Forces Dayceremony, just as they had a Heroes Day celebration led byMugabe on Monday in which he bluntly told critics of hisre-election to "go hang".
MILITARY "PILLAR"
In his speech, Mugabe praised Zimbabwe's armed forces as a"reliable pillar" of his government, which he said was makingefforts to improve military wages and living conditions.
He accused Tsvangirai, who prior to the election was hisprime minister in the fractious unity government, of workingwith former colonial power Britain by calling for reforms of thearmed forces.
Tsvangirai had accused the pro-Mugabe security forces ofshowing bias and intimidation against him and his party, makinga fair election impossible.
Mugabe said it was "surprising that some misguided fellowcountrymen at the behest of their Western allies blatantlydisregard the good work done by the Zimbabwe Defence Forces inmaintaining peace and tranquillity in the country."
"They disguise this by demanding what they call securitysector reform, when it is obvious the enemy's real ploy is todilute the efficiency of the Zimbabwe Defence Forces," he added.
Pointing to multiple flaws in the July 31 vote cited bydomestic observers, Western governments - especially the UnitedStates - have questioned the credibility of the election outcomeand are considering whether to prolong sanctions against Mugabe.
But Mugabe is drawing comfort from African electionobservers who endorsed the elections as largely free and orderlyand have urged Zimbabweans to move on peacefully. Westernobservers were barred from observing the vote.
