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(HERALD) Mining firms in indigenisation stampede

Mining firms in indigenisation stampede
Sunday, 01 May 2011 00:32 Local News
Sunday Mail Reporter

FOREIGN-OWNED mining companies operating in Zimbabwe are in a last-minute stampede to regularise their shareholding structures in line with the country’s indigenisation laws ahead of the May 10 deadline.

Although those yet to conform to laid- down regulations could not be ascertained by late yesterday afternoon, it is understood a good number of firms were last week streaming to the Ministry of Youth Development, Indigenisation and Empowerment offices in Harare to submit implementation plans.

The regulations compel all foreign companies to cede 51 percent of their shares to indigenous players. The minister, Cde Saviour Kasukuwere, said Statutory Instrument 34/2011 — which was gazetted in March this year — had drawn a huge response from the sector.

“There are quite a number of companies that are presenting their plans as we get closer to the May 10 deadline,” he said.

“There are provisions that are set to deal with defaulters.”

According to SI 34/2011, all affected companies were to submit indigenisation implementation plans within 45 days of March 25, the date of the gazette publication.
Every firm was also expected to have met its minimum indigenisation and empowerment quota by disposing of a controlling interest or 51 percent shareholding to designated entities.

Such entities include the National Indigenisation and Empowerment Fund; the Zimbabwe Mining Development Corporation or companies incorporated by the ZMDC for the purposes of indigenisation; the proposed statutory Sovereign Wealth Fund; and share-ownership schemes or trusts for employees, management or communities.

The stipulations affect all mining businesses whose net asset value stands at or is above US$1.-The Sunday Mail

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)

posted by MrK @ 6:25 PM