Maravi

(HERALD) Zimplats submits fresh indigenisation plan

COMMENT - So the indigenisation of ZIMPLATS means the following:
total redistributed shares: 51%
Indigenisation fund: 31%
Workers: 10%
Local Community Trust: 10%

Not bad for a start. And remember that there are a lot of undeveloped mines as well. More eyes can ensure that dividends are actually paid out.

Zimplats submits fresh indigenisation plan
Wednesday, 14 March 2012 00:00
Business Reporter

South AFRICA’S Implats has submitted a fresh indigenisation plan for its Zimbabwean subsidiary, Zimplats, which complies with requirements of indigenisation and empowerment laws, bringing to an end protracted discussions on the issue.

This follows a meeting yesterday between Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, Implats chairman Dr Khotso Mokhele and Implats chief executive Mr David Brown.

Previous discussions for Zimplats to comply with the 51 percent indigenous shareholding threshold had not yielded results as the firm insisted on empowerment credits for ground it released to Government in 2006.

Its demands were based on an agreement with the Government in 2006 when it released claims worth US$150 million, but the agreement was struck before the Indigenisation and Economic Empowerment Act was finalised.

Zimplats will now transfer 10 percent to the local community trust, 10 percent to workers and the balance to the National Indigenisation and Economic Empowerment Fund to achieve 51 percent local shareholding.

Foreign-owned firms are required in terms of indigenisation laws to transfer for value at least 51 percent of their equity to locals.

Mr Brown said the two parties had finally found common ground on the matter.

“It is pleasing to come here and to be able to submit a plan that complies with the legislation, which is obviously the right thing for us to do as a company.

“What it does is that it cements the principles of the agreement between the two parties. But obviously there are some (share transfer) details that need to be worked through over the next few weeks and months,” he said.

“But I think, essentially we have found each other through this meeting.

“I think that augurs well for the mining industry in Zimbabwe and also Zimplats and the contribution that it can make to the economy and the country and people of Zimbabwe going forward,” said Mr Brown.

Dr Mokhele said he was pleased to have reached an agreement with the Government of Zimbabwe.
“The meeting was very constructive, both parties agreeing and appreciating the fact we need to engage with each other constructively and I think to a significant extent concluded satisfactorily to both parties,” he said.

Minister Kasukuwere said the agreement, in principle, was an historic moment for Zimbabwe and will enable locals to benefit from their resources.

He said the agreement with Implats will serve as a successful indigenisation model to other mining firms.

“We want to thank the Implats leadership for submitting a plan which in principle meets our expectations as Government.

“As I have said before, we were keen to find a mutually acceptable agreement with the company.

“The plan submitted to us by Implats to a very large extent complies with the laws of our country in terms of achieving the 51 percent minimum indigenisation threshold.
“Details we are now going to be working on are to do with transfers,” he said.

Prior to the agreement, the South African firm owned 87 percent of Zimplats, Zimbabwe’s biggest platinum extractor.

He said mining was a critical industry and valued the contribution by Implats in terms of growing the economy.

But he said benefits from extracting minerals needed to be mutual between Zimbabweans and foreign investors.

The negotiating parties could not reach an agreement from previous engagements as Implats insisted on Government recognising an agreement struck in 2006 when it released a piece of platinum ground to the State.

This position was overtaken by events, as empowerment credits are not provided for in the Indigenisation Act, which was passed by Parliament in 2008.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), ZIMPLATS

posted by MrK @ 10:47 PM