Caledonia hands over empowerment shares
21/06/2012 00:00:00
by Business Reporter
BLANKET Gold Mine has concluded a deal for the transfer of 16 percent of its shareholding to the National Indigenisation and Economic Empowerment Fund for about US$12 million.
Blanket’s Canada-based holding company, Caledonia Mining Corporation, said the deal was part of the transfer of 51 percent of the mine’s shareholding to locals as required under the Zimbabwe’s economic empowerment programme.
“A conditional agreement has been signed for the sale of 16% of Blanket for a consideration of US$11.742 million to NIEEF,” Caledonia said in a statement Thursday.
“The agreement is in accordance with the Memorandum of Understanding ("MoU"), which was signed with the Government of Zimbabwe on February 20, 2012 pursuant to which Indigenous Zimbabweans will acquire 51% ownership of the Blanket Mine for a paid transactional value of US$30.09 million.
“This agreement is in addition to the following conditional agreements which have already been signed in accordance with the terms of the MoU and as disclosed in previous news releases.”
The company has since agreed the sale of a 15 per cent stake to a consortium for US$11 million as part of its compliance with the indigenisation laws. A 10 per cent stake was also sold to the Blanket Employee Trust for US$7.3 million.
In addition the company donated a further 10 per cent of Blanket to the Gwanda Community Share Ownership Trust, established for the benefit of the local community.
Blanket will also make a non-refundable donation of US$1 million to this trust.
Labels: CALEDONIA MINING CORPORATION, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)
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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
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Canadian mining firm scoffs at indigenisation drive
Saturday, 03 December 2011 00:00
[Caledonia chief executive officer Mr Stefan Hayden] Takunda Maodza Senior Reporter
CALEDONIA Mining Corporation has scoffed at Government's economic empowerment drive, branding indigenisation regulations a political gimmick to lure votes for Zanu-PF.
The Canadian firm's remarks come at a time when President Mugabe has told foreign companies that are not comfortable with the black empowerment drive to leave the country.
The Toronto and London-listed gold mining company which owns Blanket Mine in Gwanda was this week quoted by Mining Weekly as vowing not to cede 51 percent stake as prescribed by law.
Caledonia chief executive officer Mr Stefan Hayden said his company did not intend to finalise a sale of its shares to locals until the run-up to elections.
Mr Hayden said the policy was "a political football game at the moment".
"If Zanu-PF plays the indigenisation card now, then, come the elections, there is nothing left to play," he was quoted as saying.
Mr Hayden said negotiations on his company's indigenisation plan "will continue until before the elections".
Caledonia looks forward to producing at least 40 000 ounces of gold next year.
Zanu-PF yesterday advised the firm to comply with the law, saying the indigenisation programme was unstoppable.
"All companies are expected to comply with the indigenisation law. We are not politicking.
"We are empowering our people and this has been demonstrated by the Chegutu-Mhondoro-Ngezi-Zvimba and Unki Mine Community Share Ownership Trusts," said Zanu-PF spokesperson Cde Rugare Gumbo.
Mines and Mining Development Minister Obert Mpofu refused to comment on the matter yesterday, referring all questions to Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere.
Caledonia has always been on a collision course with Government.
Its mining licence was briefly cancelled mid this year after the company failed to submit an acceptable indigenisation plan.
Mr Hayden flew into the country following the cancellation of the licence and engaged Minister Kasukuwere.
Government lifted the cancellation after the firm pledged to provide a revised economic empowerment plan compliant with the Indigenisation and Economic Empowerment Act.
Launching the Tongogara Community Share Ownership Trust at Anglo-American Corporation-owned Unki Mine recently, President Mugabe said of defiant companies: "This (black economic empowerment) is our policy. We do not hide it. We want empowerment for our people. Vanenge vasingade, we say go now, if not yesterday."
Labels: CALEDONIA MINING CORPORATION, CANADA, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)
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COMMENT - You wonder who Gideon Gono is working for sometimes.
Warning ... Reserve Bank Governor Gideon Gono says Kasukuwere 'confrontational'
19/08/2011 00:00:00
by Gilbert Nyambabvu
RESERVE Bank governor Gideon Gono on Friday launched an astonishing attack on Indigenisation Minister Saviour Kasukuwere, hours after the latter gave two banks and several mining firms an ultimatum to comply with black empowerment laws or lose their licences.
Without referring to Kasukuwere by name, Gono said the minister’s threats to take-over Barclays and Standard Chartered Banks “could irreparably harm the nerve-centre of our recovering economy”.
“Tendencies towards firing harmful verbal economic-gunpowder must be minimised by all stakeholders in the interest of the economy and the Reserve Bank of Zimbabwe Board forewarns people playing with economic gunpowder to leave the game to those well-trained in its use and safe custody, lest the unintended will happen, to everyone’s future regret,” Gono warned in an ill-tempered statement.
Gono’s attack on Kasukuwere will be seen as the latest evidence of confusion within the coalition government over a law designed to secure a minimum 51 percent stake for Zimbabweans in all foreign-owned firms.
The law has been criticised by foreign companies who have made counter-offers of at least 30 percent equity for locals – proposals already shot down by Kasukuwere.
Gono warned the two banks that his intervention should not be “misconstrued to imply that the Reserve Bank condones or encourages non-compliance with the law by any institution operating under its purview”, adding: “The law of the land is the law and it must be complied with.”
But the central bank chief said “dishing out threats to sensitive institutions that are custodians of people’s hard earned savings” smacks of “irrational exuberance during these times of necessary soberness.”
“There are ways of achieving the same objectives as intended by the law through non-confrontational means …,” Gono said.
He added that the Reserve Bank was the only authority empowered to “issue or take away banking licences”, adding:
“The RBZ has neither given notice to nor does it have any immediate or foreseeable intention(s) to withdraw operating licences from any registered financial institution under its supervision.”
Gono’s slap down of Kasukuwere came on the same day that a gold mine revealed it had been threatened with seizure.
Gwanda-based Blanket Gold Mine, majority-owned by Canadian firm Caledonia Mining Corporation, issued a statement on Friday accusing Kasukuwere of exceeding his “legal powers” after it emerged the minister had asked his mines counterpart, Obert Mpofu, to cancel its operating licence.
“Caledonia has received a copy of a letter sent from the Minister for Indigenisation to the Minister of Mines, in which he requests that the Minister of Mines cancels Blanket's operating licence on the grounds that Caledonia's (indigenisation) proposal does not meet the legislated indigenisation requirements,” the statement said.
“Caledonia believes the Minister for Indigenisation has exceeded his legal powers both in terms of his assessment of Caledonia's proposal and his request to the Minister of Mines.”
The company said it was seeking legal advice.
Labels: CALEDONIA MINING CORPORATION, GIDEON GONO, NATIONALISATION, NEOLIBERALISM, SAVIOUR KASUKUWERE
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COMMENT - Again, Zimbabwe Leads The Way.
"Mr Hayden said his meeting with the minister had been an eye-opener as there has been a lot of misconception about the indigenisation drive. "We have managed to create an understanding, I feel Zimbabwe is a destination for investment," said Mr Hayden. " For anyone paying attention, this is how you negotiate. Carrot AND stick.
Govt lifts Caledonia licence suspension
Wednesday, 24 August 2011 02:00
Zvamaida Murwira Business Reporter
[Ceasefire . . . Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere (left) with president and chief executive of Caledonia Mining Corporation Mr Stefan Hayden accompanied by other Caledonia executives at the ministry’s offices in Harare yesterday]
GOVERNMENT yesterday lifted the cancellation of Caledonia Mining Corporation licence. The licence was cancelled after the comnpany failed to submit an acceptable indigenisation plan.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere yesterday held a meeting with the mining company representatives led by Canadian-based chief executive and president Mr Stefan Hayden at his offices.
The meeting resulted in the two issuing a joint Press statement in which the Government agreed to lift the suspension while the mining company was asked to submit a revised plan.
"The parties met on August 22 2011 and agreed on a process that will result in the production of a revised indigenisation implementation plan for Blanket Mine that is compliant with the Indigenisation and Economic Empowerment Act. The plan will take into account the independently verified intrinsic value of the mineral resources, plant and equipment at the mine," read the agreement.
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* Zimplats to re-engage Govt on indigenisation plan
* Minister Kasukuwere lays down the law
"As a result Minister Saviour Kasukuwere has agreed to suspend the cancellation of Blanket Mine's operating licence pending the submission of a compliant indigenisation implementation plan."
Addressing journalists yesterday, Minister Kasuku-were said the discussions yielded an amicable resolution that will result into a win-win situation.
He said their initial submission entailed credits to the community that they wanted to be regarded as part of the compliance plan, a situation which was not acceptable.
"We told them that in terms of the law we will not take credits as part of compliance. We want plans that take into account our sovereign right to the mineral deposits," he said.
The minister said all firms were free to engage his ministry for a discussion that would yield a mutually beneficial arrangement.
The underlying principle, said Minister Kasukuwere, was to look at issues from a business point of view at the same time appreciating that mineral deposits are owned by Zimbabweans who ought to have a stake in their resources.
"The position of the ministry is not that of grabbing and running away with the mines, you are welcome as an investor to come to Zimbabwe," he said.
Mr Hayden said his meeting with the minister had been an eye-opener as there has been a lot of misconception about the indigenisation drive.
"We have managed to create an understanding, I feel Zimbabwe is a destination for investment," said Mr Hayden.
Caledonia is a Canadian company listed on the Toronto, New York and London stock exchanges with the portfolio of exploration, development and mining assets in Zambia, Zimbabwe and South Africa.
Labels: CALEDONIA MINING CORPORATION, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE
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COMMENT - Canada's Caledonia Mining's Blanket Mine to lose license for not complying to indigenisation laws. Zimbabwe Leads The Way. You can tell the mining companies are just trying to see what they can get away with.
Blanket Mine to lose licence
Tuesday, 23 August 2011 02:00
Business Reporter
THE Government has so far
approved 39 indigenisation plans submitted by foreign owned mines and has indicated that it will
cancel the licence for Blanket Mine after it failed to meet its minimum requirements.
According to statistics released Friday by the Ministry of Youth Development, Indigenisation and Empowerment,
Blanket Mine that is owned by the Caledonia Mining Corporation of Canada failed to submit an acceptable indigenisation plan within the set period.
Caledonia is a Canadian company listed on the Toronto, New York and London stock exchanges with a portfolio of exploration, development and mining assets in Zambia, South Africa and Zimbabwe.
The Gwanda-based Blanket Mine recently recorded a 300 percent increase in second quarter profits on the back of record world market prices and a significant ramp up in production.
Gold output for the second quarter topped 8 226 ounces up 12 percent on the previous quarter and some 141 percent over the comparable period last year.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere on Friday said that he had written to the Ministry of Mines and Mining Development recommending that Blanket Mine's licence be revoked.
"We have been talking to them for some time now and it would appear they are refusing to comply and this leaves us with no choice but to take action and cancel their licence," he said.
Among some of the companies whose plans were approved by the ministry are Dorowa Minerals Limited, Kadoma Gold Projects, New Dawn, Exploration Mining, Anjin Investments, Interfin Resources, Zimbabwe Alloys, Buchwa Iron Mining Company and African Mills and Minerals.
Minister Kasukuwere said that his ministry would continue to peruse the plans that have been lodged by the mining firms to ensure that the process is completed ahead of the September 30 deadline that has been set.
Mining firms had previously resisted the Government's position demanding 51 percent shareholding in foreign owned companies, opting instead to offer social credits as part fulfilment of the indigenisation requirements.
Minister Kasukuwere, who has maintained that workers and the communities should instead get direct equity, rejected this position.
Other mining giants including Zimplats, Mimosa and Murowa Diamonds have been given a two-week ultimatum to refine their indigenisation plans or risk losing their licences.
Labels: CALEDONIA MINING CORPORATION, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), MINING, SAVIOUR KASUKUWERE
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Miner: Kasukuwere exceeding legal powers
19/08/2011 00:00:00
by Gilbert Nyambabvu
BLANKET gold mine’s Canada-based holding company, Caledonia Mining Corporation says it is taking legal advice after Empowerment Minister Saviour Kasukuwere recommended the cancellation of its operating licence.
In a statement issued on Friday, Caledonia said it had received a copy of a letter Kasukuwere wrote to his mining counterpart, Obert Mpofu requesting that the firm be barred from operating in the country.
“Caledonia has received a copy of a letter sent from the Minister for Indigenisation to the Minister of Mines, in which he requests that the Minister of Mines cancels Blanket's operating licence on the grounds that Caledonia's (indigenization) proposal does not meet the legislated indigenisation requirements,” the statement read.
Gwanda-based Blanket Mine is Caledonia’s sole operating subsidiary although the company has some platinum and copper exploration projects in South Africa and Zambia.
Foreign companies are required under law to transfer ownership of at least 51 percent of their shareholding to locals as part of government measures aimed at empowering the previously disadvantaged black majority.
However, Kasukuwere recently announced that some 175 companies had submitted proposals that did not meet the minimum 51 percent threshold.
Mining companies were said to be offering at least 26 percent equity with the balance met through so-called empowerment credits in an arrangement rejected by the government.
The companies have been given 14 days to revise their proposals or risk having their licences cancelled and their operations in the country seized.
Caledonia claims it is yet to receive official communication from Kasukuwere regarding its proposal.
“Caledonia submitted a comprehensive indigenisation proposal (the "proposal") to the Minister for Indigenisation on May 9, 2011,” the statement read.
“Since then neither Blanket nor Caledonia have received any formal notification that the proposal is deficient or that it should be revised within any specified timescale.”
The company however warned that Kasukuwere would be exceeding his “legal powers” if he were to order the cancellation of its Blanket Mine licence.
“Caledonia believes the Minister for Indigenisation has exceeded his legal powers both in terms of his assessment of Caledonia's proposal and his request to the Minister of Mines,” the company said.
“Caledonia is seeking urgent clarification from the relevant ministers, and is also consulting with its legal advisers regarding appropriate legal action.”
Blanket Mine recently posted impressive results with second quarter gross profits reaching $6.2 million, up 300 percent on the comparable period in 2010.
Output over the same period was also topped 8,226 ounces up 141 percent on the same period last year.
Management said production costs per ounce of gold had also significantly eased to US$585 from US$816 in the second quarter of 2010.
The company said it was looking to increase output to 10 000 ounces per quarter to take advantage of the current gallop in world market price of gold on the back of increasing economic concerns in the US and Europe.
Labels: CALEDONIA MINING CORPORATION, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE
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Response to indigenisation regulations
Wed, 17 Feb 2010 13:49:00 +0000
CALEDONIA Mining Corporation ("Caledonia") (TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) notes the recent gazetting of regulations pursuant to section 21 of the Indigenisation and Empowerment Act of 2008, in terms of which all companies are required to submit an indigenisation plan by April 15, 2010 explaining how their Zimbabwean operations will achieve the required minimum level of 51% ownership by indigenous Zimbabweans within five years across all business sectors.
The regulations also provide for the gazetting within twelve months of further rules relating to each sector and subsector of the economy as to what lesser share than the minimum indigenisation and empowerment quota may apply to businesses operating in the sector or subsectors in question.
The regulations also provide that a level of indigenisation lower than 51% may be assigned to a foreign-owned company where there are "socially and economically desirable objectives" in favour of such lower level.
The Chamber of Mines of Zimbabwe, on behalf of the mining sector currently, is in discussions with relevant authorities with respect to finalising the indigenisation and empowerment quota for the mining industry.
Caledonia's formal response will be guided by the conclusion of these ongoing discussions and the applicable legislation.
Shareholders will be kept updated on further indigenisation developments.
Labels: CALEDONIA MINING CORPORATION, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)
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