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Zimplats to comply with indigenisation regulations

Zimplats to comply with indigenisation regulations
By: Business Reporter
Posted: Sunday, April 10, 2011 9:49 pm

ZIMBABWE’s giant platinum producer, Zimplats, is set to comply with the indigenization policy which several foreign mining entities were refusing to conform with, this publication can reveal.

The company has been reportedly, together with other mining companies refusing to comply with the policy citing their corporate social responsibility as an excuse. However, President Robert Mugabe recently gave a stern warning to the world’s second platinum producer to indigenize or risk loosing their company to locals.

Zimplats corporate affairs manager Ms Busi Chindove confirmed to The Daily Mail that the company had sent its proposal forms to the Ministry of Youth Development, Indigenisation and Economic Empowerment for approval.

“We have already sent our indigenisation framework proposal to the ministry for approval as a step towards compliance with the national Indigenization and Economic Empowerment Act,” said Ms Chindove.

An official from the Ministry of Youth Development, Indigenization and Empowerment who spoke on condition of anonymity has confirmed the development.

“Government gave a general notice number 114 which was calling on miners to comply with the provisions of the law within a space of 45 days.

“Yes Zimplats sent its compliance proposal forms and as a ministry we are looking into the forms and also the government has given a general notice to mines calling them to comply with the provisions of the law,” he said.

Zimplats is 87 percent owned by Impala Platinum (Implats) a South African platinum producer located on the Hartley Geological Complex on the Zimbabwean Great Dyke south-west of Harare, Mhondoro Ngezi.

The Government last year said it was going to introduce stiffer penalties for non-compliance to the law especially the financial institutions which were at the forefront of refusing to comply with the law.

Government has only exempted Zimbabwe Iron and Steel Company (Zisco) Steel Mine from the 49/51 percent shareholding threshold.

This came after realizing that the company that resuscitated operations at Zisco Steel, Essah Africa Holdings an Indian firm, should not be affected as Zisco Steel would drive the national economy if it resumes operations.

Impala Platinum (Implats) has swiftly become the world's second-largest platinum producer behind Anglo Platinum. Implats produces about 1.7 million ounces of platinum annually from its mines in South Africa, the Bushveld Complex and Zimbabwe (the Great Dyke).

The company also produces palladium, rhodium, and ruthenium (all platinum group metals) as well as nickel and other metals. The bulk of Implats' platinum is used in automobiles (to make catalytic converters) and jewelry; it is also sold to the chemical, electronics, glass, and petroleum industries. North America and Asia account for most of the company's sales.

Implats has exploration projects in both South Africa and Zimbabwe.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), ZIMPLATS

posted by MrK @ 6:42 PM