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today.
The Secretary for Youth Development, Indigenisation and Empowerment, Mr George Magosvongwe, and the Secretary for Mines and Mining Development, Mr Prince Mupazvirihwo, will meet to discuss the matter. They will discuss the matter before their respective ministers, Saviour Kasukuwere and Obert Mpofu, announce the final position tomorrow.
Minister Kasukuwere last week gave Zimplats two weeks within which to comply with the law.
The two sides have so far failed to agree on an indigenisation framework for the platinum-mining giant, in which Implats of South Africa has an 87 percent stake. This follows a meeting between Zimplats and Government on Friday, which ended in deadlock, as the company insisted on empowerment credits to meet the requirements of the law.
“There was a meeting on Friday. It ended in a deadlock. There will be meetings between the permanent secretaries tomorrow (today) before the ministers meet on Wednesday,” said a source.
“The Zimplats issue will be tackled. There are no two ways about it. Government is protecting Zimbabwean interests, not any (foreign) interests.”
Last week, Minister Kasukuwere said empowerment credits were not provided for in the laws and the framework for meeting requirements of the Indigenisation and Empowerment Act. Foreign mining firms with a net asset value above US$1 are required to sell at least 51 percent stake to black Zimbabweans, as part of Government’s efforts to uplift previously disadvantaged locals.
In its indigenisation plan, Zimplats proposed to give a 10 percent stake to local communities, 5 percent to a staff share trust, 6,5 percent to a sovereign wealth fund and the balance for a 51 percent indigenous shareholding to be awarded as credits for ground released to Government.
Zimplats has also insisted that Government recognise an agreement signed in 2006, entitling the company to empowerment credits in exchange for US$153 million worth of platinum reserves it released, which the Government dismissed, but only agreed to compensate.
But the agreement was signed when the Government had not finalised the Indigenisation Act, passed by Parliament in 2008, and regulations detailing the overall compliance framework.
The deadlock over empowerment credits has stalled Zimplats’ progress towards full compliance and Government directed the firm to transfer 29,5 percent of its equity to a local indigenisation fund.
Minister Kasukuwere wrote to Zimplats and indicated that Government would take action against the company without further notice in the event that it did not transfer the 29,5 percent stake to the National Indigenisation and Empowerment Fund within the two-week deadline.
He gave the ultimatum after growing frustrations over lack of progress on the issue from numerous engagements. But Implats chairman Mr David Brown has said they will not leave Zimbabwe as it remained a good investment destination with potential for expansion.
Online Reporter