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(TALKZIMBABWE) Indigenisation threshold not yet set for mining sector: Minister

Indigenisation threshold not yet set for mining sector: Minister
By: New Ziana
Posted: Monday, June 28, 2010 4:22 pm

THE mining sector’s indigenisation threshold has not yet been set or approved by the Government, contrary to assertions by the industry, a Cabinet Minister said on Friday.

The Chamber of Mines, which represents the interests of the sector, has said it had agreed a minimum 15 percent indigenisation threshold for the sector with the Ministry of Mines and Mining Development.

“We have written a proposal which we believe has been accepted by the Government,” the body’s chief executive officer, Dr Chris Hokonya, said.

But Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, who is in charge of implementing the indigenisation policy, said no agreement on the threshold for the mining industry had been reached between his ministry and the Chamber of Mines or individual companies.

“The ministry has not received or approved any proposal from the mining sector,” he said.

But the Chamber of Mines insisted the Ministry of Mines and Mining Development and its members had agreed that local people should have a minimum of 15 percent shareholding in mining companies, and the balance — adding up to 51 percent — be attained through empowerment credits.

Dr Hokonya said the industry was willing to offer more equity, but it would be detrimental to do so at the onset.

“We should start with lesser equity and in the long term, with more value being created in the sector, people can buy more equity.

“We are not saying no to 51 percent, we are saying 51 percent at the onset is not the way to go for we will not then be able to unlock greater value for the benefit of the nation,” he said.

Indigenisation laws were this week revised, providing for the creation of sector specific committees to determine thresholds, among other issues.

The committees are yet to be set up.

At least 600 companies, including mining firms, have submitted indigenisation proposals to the ministry ahead of the 30 June Government deadline.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)

posted by MrK @ 4:12 PM