Maravi

(NEWZIMBABWE) Mimosa Platinum agrees ownership deal

Mimosa Platinum agrees ownership deal
12/12/2011 00:00:00
by Gilbert Nyambabvu

MIMOSA Platinum Mine, a joint venture between Impala Platinum and Aquarius, has given a 10 percent stake to locals, a government minister said on Monday, as it aims to meet a controversial law on local ownership.

"This is the first phase of (Mimosa's) compliance, they have given 10 percent shareholding to the community after reaching an agreement with the community and have already signed," Empowerment Minister, Savior Kasukuwere told reporters in Harare.

The 104,008 PGM ounces/per annum mine, located in the Midlands mining town of Zvishavane is a 50-50 joint venture between Implats and Acquarius.

Kasukuwere’s announcement means Mimosa joins other local platinum producers, Zimplats and Unki in moving to comply with the country’s empowerment laws.

Foreign-owned companies are now required by law to transfer control of at least 51 percent of their shareholding to locals in a policy the government says is aimed at economically empowering the country’s black majority.

An initial compliance plan submitted by Mimosa was rejected in May forcing the company to make a revised proposal in August.

Last week the company announced in its annual report that production remained flat at around 100 000 oz/y of platinum in the last quarter with management adding this would be maintained over the next five years.

Unit costs however, were adversely impacted by higher-than- anticipated labour costs, material use and consumable costs, as well as the stronger rand.

The bump in labour costs was due to salary rate adjustments, while material costs were impacted by the need for additional material use in both production and support as a result of poor ground conditions experienced north of the Blore shaft.

The company said noted that expansion opportunities exist at both the South Hill and North Hill blocks, in Bulawayo’s Great Dyke.

Labels: PLATINUM

posted by MrK @ 6:04 PM