Maravi

(TALKZIMBABWE) Ministry to rule on non-complying mine

COMMENT - These foreign corporations will always be full of excuses. It is time to get tough, and yank their licenses.

Ministry to rule on non-complying mines
By: By Prof Tshuma, Business Reporter
Posted: Friday, February 4, 2011 4:47 pm

…as financial institutions continue refusing compliance

MINERS have been refusing to comply with the indigenization policy citing that they were already indigenized as they were into corporate social responsibilities as well as mobilizing foreign revenue inflows especially the international banks.

In response to this move, the Minister of Youth, Development, Indigenization and Empowerment, Savior Kasukuwere has given a statement that government was finalizing consultations as to what steps to take on the issue of miners who were making the claims.

“Currently work is at an advanced stage to finalise consultations on the mining sector with a view to publish the gazette for the sector not later than the end of February 2011,” said Kasukuwere.

He said business entities were grouped according to their sectors and were asked to send their proposals for considerations in line with the indigenization policy.

Thirteen sectoral committees were created in August 2010.

“The mining sector committee report has since been analyzed and presented to cabinet for consideration and we agreed that the percentage of indigenous shareholding be as follows: 100% for alluvial diamonds; 51% for other diamonds and minerals and 51% for all new investment in the mining sector.

“The share ownership trusts be entitled to 10% of profit before tax for reinvestment in the community in accordance with section 14B of the Indigenization and Economic Empowerment (General) Regulations 2010 as amended, defer implementation of empowerment of empowerment credits pending further reflection.

“We also agreed that a sovereign fund be created for the mining sector and to approve the proposed timeframes, thresholds and lesser shares,” he explained.

The grouped sectors were as follows manufacturing, tourism, finance, mining, transport, communication, agriculture, energy, construction, agriculture, retail/trading, property/real estate, services and others.

The Indigenization and Economic Empowerment Act creates an enabling environment that results in increased participation and empowerment of indigenous people in the Zimbabwean economy and concurrently address issues of employment creation, economic growth and poverty alleviation.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE

posted by MrK @ 6:45 PM