(NEWZIMBABWE) Canadian firm assures govt after threat

Thursday, December 15, 2011

(NEWZIMBABWE) Canadian firm assures govt after threat

Canadian firm assures govt after threat
14/12/2011 00:00:00
by Business Reporter

CANADIAN gold miner Caledonia Mining says it is fully committed to complying with the country’s indigenisation policy, after a fresh threat to its gold-producing property over alleged reluctance to submit an "acceptable" compliance plan.

Empowerment Minister, Saviour Kasukuwere at the weekend set December next year as the new deadline by which all foreign mining companies should have complied with the controversial empowerment legislation.

The law seeks to force foreign companies to give up a 51 percent majority shareholding to local citizens.

Caledonia’s Blanket mine in Gwanda is one of the leading gold-producing operations in Zimbabwe.

Kasukuwere said the government would move to take over the Blanket gold mine if its owners did not comply with the indigenisation policy.

"If you do not want to comply, we will take over, simple and straightforward. The government is actively focused on achieving total control of our economy.

"For those who do not accept our laws, we will pay for their investment and the rest will be for our people and we move on," Kasukuwere said.

However, Caledonia reaffirmed its commitment to complying with the ownership law, which analysts and economists say puts a damper on foreign direct investment for the country.

The company said it "remains fully committed to the negotiations that are currently ongoing with the government".

Caledonia said it was hopeful that it would strike "a mutually agreeable indigenisation implementation plan" with the Zimbabwean government.

"Caledonia submitted a revised indigenisation plan in October 2011 and has timeously responded to requests from the Zimbabwean government for further information in respect of the plan."

Chief executive Stefan Hayden also denied state-media reports suggesting he had dismissed the indigenization programme as a ‘political gimmick’.

“Caledonia categorically denies having made any statements to the effect that he and Caledonia are not wholly committed to the rapid implementation of Indigenisation of the Blanket Mine,” the company said in a statement.

“Hayden also refutes allegations that he has “scoffed at” the empowerment drive, that he has branded indigenisation as a “political gimmick”, or that Caledonia has in any way refused to comply with the indigenisation laws or caused delays in the indigenisation negotiations.”

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