Maravi

(NEWZIMBABWE) Indigenisation: New Dawn targets pension funds

Indigenisation: New Dawn targets pension funds
by Gilbert Nyambabvu
18/05/2011 00:00:00

GOLD mining company, New Dawn says production over the quarter ended March 2011 increased 83 percent as the firm awaits the government’s response to its indigenisation compliance plan which targets pension funds and a listing on the Harare bourse.

Canada-based New Dawn last year acquired Central Africa Gold whose Zimbabwe interests included Camperdown Mine, Dalny Complex, Golden Quarry Mine, Old Nic Mine and Venice Complex which are all located around Kadoma.

The acquisition added to New Dawn’s portfolio which already included the Angelus and Turk mines making the Toronto-listed company, one of Zimbabwe’s major gold producers.

In a statement issued on Monday the company said consolidated gold output over the quarter to March 31 topped 6,226 ounces, an 83.4 percent jump on the 3,395 ounces produced over the corresponding year in 2010.

The increase in output as well as firming gold prices boosted revenues to US$8 million over the quarter ended March 31, a 110 percent increase.

“The increase in gold production was a result of greater tonnage mined and processed at the Turk Mine, as well as an increase in production output from the Central African Gold properties,” the company said.

Meanwhile, management said they were waiting for feedback from government regarding their plans to comply with the country’s indigenisation laws under which all foreign companies must localise control and ownership of at least 51 percent of their shareholding.

New Dawn said its plan proposed engaging “indigenous capital partners” such as pension funds and other investment funds as well as seeking a listing on the Zimbabwe Stock Exchange (ZSE).

“The plan also anticipates the establishment of employee and community share ownership plans for the benefit of indigenous Zimbabweans that are intended to provide the opportunity for broad-based participation by indigenous Zimbabweans,” the company said.

“New Dawn is continuing to engage in confidential discussions with the government in an effort to reach agreement about the terms, conditions and timing of an indigenisation program based on the previously submitted plan that will be compliant with applicable legal requirements.”

Management however, warned that “substantial uncertainty” remained regarding the implementation of the indigenisation regulations and their potential impact on the company.

“If (New Dawn) is unable to obtain approval for its plan (this would) raise significant implications as to the company's ability to continue to conduct its operations in Zimbabwe, as well as to obtain the funding necessary to continue to implement its current business plan.”

New Dawn plans to increase annualized gold production 60,000 ounces within the next 18 to 24 months, rising to 100,000 ounces over the next four to five years.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), PENSIONERS

posted by MrK @ 2:58 PM