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(HERALD) Mining firms’ indigenisation plans fall short of law - Govt

Mining firms’ indigenisation plans fall short of law: Govt
Deputy Business Editor

GOVERNMENT has expressed disappointment with the indigenisation plans submitted by local and foreign mining firms who are asking for exemptions from the Indigenisation and Economic Empowerment Act.

According to a senior official in the Ministry of Youth Development, Indigenisation and Empowerment who asked not to be named, most of the plans submitted did not address how they will achieve 51 percent ownership by locals within five years.

"There is a disturbing trend in the mining sector. We have received about 62 proposals from the mining sector and these include foreign, Government and indigenous operations.

"What is worrying us is the seeming similarity in approach that they do not want to concede.

"They are just asking for exemptions and credits for what they have done in their areas and this includes social and economic development.

"This is not acceptable, they should do more and we expect them to abide by the law," said the official.

The deadline for the submission of indigenisation plans was extended by a month to May 15 to give the companies enough time to consult their principals on the way forward.

Indigenisation and Empowerment Minister Saviour Kasukuwere has maintained that while more time had been granted, this did not mean reversal of the law.

While the foreign owned companies are requesting for audits on what they have done in their communities, the official said that the thrust appeared to be directed at maintaining the status quo.

It would appear that the response from the sector was guided by the Chamber of Mines, which earlier in the year said that it was consulting its members on how to comply with the indigenisation regulations.

Initially the chamber offered a 10 percent stake to locals but later revised this to 16 percent but the Government turned this down.

There has been growing concern in Government over certain resources such as minerals that are finite resources where local people were not benefiting from their exploitation.

Among some of the foreign owned companies whose proposals were turned down were Zimplats, the leading platinum miner in the country whose plan was dismissed as "crazy" by Minister Kasukuwere.

"Zimplats’ proposal is very crazy, it is crazy. I am going to meet them on their proposal, which is very crazy.

"We insist that 51 percent should go to indigenous people. In any case how much are we getting from the mines? Nothing.

" Australians say we have failed to run our country but they are sticking around, why don’t you go if we have failed?" the Minister said.

Although there have been concerns raised in some quarters over some aspects of the Indigenisation and Economic Empowerment Regulations, Minister Kasukuwere said it was work in progress.

"The discussions to review areas of concern are continuing and are still work in progress, but the law is in place and working.

"The fact that we extended the deadline for submission of compliance deadline does not mean we suspended the regulations," he said.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), MINING

posted by MrK @ 8:38 PM