Maravi

(NEWZIMBABWE) SA miner unfazed by indigenization

SA miner unfazed by indigenization
by
06/05/2010 00:00:00

DIVERSIFIED South African miner, African Rainbow Minerals (ARM) says local indigenisation laws will not deter it from investing in Zimbabwe adding talks regarding possible projects are underway with authorities.

The mining group which is owned by South African billionaire oligarch Patrice Motsepe said its planned move into Zimbabwe was however still in its early stages but stated it was not concerned about the planned indigenisation of foreign-owned mining firms.

“Our understanding of the proposed indigenisation is that it will not only involve direct ownership into the foreign-owned companies but will involve different elements of empowerment for local people,” the company said.

Zimbabwe’s empowerment legislation compels foreign-owned companies worth at least US$500 000 to localize 51 percent of their shareholding over a period of five years and critics argue the laws could scare away investors from the capital-starved economy. However ARM announced it was engaged in talks with Zimbabwean authorities aimed at identifying opportunities that would “make sense for the company”.

Late last year ARM business development chief Dan Simelane said the group was prepared to invest up to US$300 million in Zimbabwe as mining opportunities in the country brightened following dollarisation and the introduction of a raft of liberalisation measures.

"We are looking for PGMs and we are looking for coal. We are in discussion with a number of people in Zimbabwe to see whether there is something we can get on in terms of exploration," Dan Simelane said in September last year.

Meanwhile the company which boasts interests in nickel, coal, iron ore, platinum, chrome and manganese production, said global mining fundamentals, including for platinum group metals and copper, were positive, especially in the short to medium term.

Metals demand is being driven mainly by India and China and this was also supporting higher prices.

“This does create a very favourable environment for investment in mining. We continue to keep an eye out for new opportunities,” the company said.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), PATRICE MOTSEPE

posted by MrK @ 4:55 PM