Maravi

(TALKZIMBABWE) Govt to cancel Zimplats’ licence

Govt to cancel Zimplats’ licence
Posted by By Our reporter at 7 September, at 00 : 50 AM

THE inclusive Government of Zimbabwe is set to cancel Zimplats’ operating licence owing to its failure to comply with the Indigenisation and Economic Empowerment Act. The Act requires that foreign-owned companies with an annual turnover of $500,000 dollars cede 51 percent of their stake to indigenous Zimbabweans.

51 other mining firms are also facing trouble after having failed to submit their indigenisation proposals.

Zimplat’s business is production of platinum group metals from the Great Dyke in Zimbabwe. It is a member of the Impala Group of Companies. Impala held 87% of Zimplats shares by June 2009.

The company holds approximately two thirds of the Hartley Complex which is the largest of the platinum hosting centres of the Great Dyke. This asset positions Zimplats as an important developing supplier of platinum.

The decision to cancel Zimplats’ operating licence was reached after several attempts by the government to engage the platinum mining giant under the indigenisation programme failed to yield positive results.

Addressing a news conference in Harare this Tuesday, the Minister of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere said the platinum mining firm has shown arrogance towards the country’s laws, leaving the government with no option but to enforce the laws of the country.

Kasukuwere further highlighted that submissions from the financial service sector are not satisfying but expressed optimism that an agreement will be reached in the near future as discussions are currently underway.

Besides Zimplats, Mimosa mining firm is yet to comply with the indigenisation laws. However, Mimosa is engaged in negotiations with government.

Kasukuwere also indicated that Old Mutual has been given one week to comply with their proposed plan through implementation.

Zimplats has refused to comply with the Indigenisation Act citing that the government owes the firm US$151 million, which translate to 30% stake, but the government has indicated willingness to pay for anything that the company wants to offload.

New Ziana/TZG

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

posted by MrK @ 2:25 PM