Govt starts evaluating empowerment proposals

shareholding to indigenous Zimbabweans.
The State had set May 9 as the deadline for foreign-owned mining firms to submit plans on how they intend to dispose of the majority stake to locals in line with the empowerment laws.
“We have started evaluating the submissions made by the foreign-owned mining firms operating in the country,” Youth Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere told AFP.
“Most major mining firms have responded. Big companies, such as Implats (Impala Platinum) and Angloplat (Anglo Platinum) have submitted their proposals.”
Implats own about 87 percent in the country’s largest platinum mine, Zimbabwe Platinum Mines, while Angloplat owns the multimillion-dollar Unki Platinum Mine.
Angloplat has in the past backed the indigenisation programme, saying the group’s experience in South Africa had left it well-placed to recognise the importance of black economic empowerment.
It said then: “Anglo Platinum recognises the need for black economic empowerment and sustainable economic transformation.
“The company is proud of the contribution it has made to empowerment in SA, through numerous transactions it facilitated and is confident it will be in a strong position to meet the eventual requirements to be established in Zimbabwe.”
Angloplat is a subsidiary of Anglo American which has global interests in base metals, coal, diamonds, iron ore and platinum projects in Africa, Asia, Australia, Europe, North America and South America.
Minister Kasukuwere said while the “45 days have elapsed since we indicated that the proposals should be submitted, the door is still open for those that have not complied”.
Under the law, all foreign firms have until September to sell their 51 percent shareholding to locals.
The Indigenisation and Economic Empowerment Act enacted last year required all foreign-firms valued at more than US$500 000 to sell majority stakes to locals.
The new rules published on March 25 expanded the law to foreign-owned mining companies valued at more than a dollar, effectively all of them.
Although the Government is pushing for firms to sell 51 percent to locals, the Chamber of Mines has proposed trimming the indigenisation quota to a minimum of 26 percent with the balance of 25 percent made up of credits.
The credits arise from corporate social investments such as roads, schools, dams and hospitals that most major mining firms have over the years built for local communities.