Implats feels the heat over Mimosa stake

platinum sector.
Mimosa is jointly owned by Implats, the majority shareholder in Zimbabwe Platinum Mines and Aquarius Platinum Limited, on a 50-50 percent basis.
Implats has a 87,3 percent stake in Zimplats, the country’s largest platinum mine.
The leading platinum miner issued a statement yesterday expressing concern over Minister of Youth Development, Indigenisation and Empowerment Saviour Kasukuwere’s call for it to shed its stake in Mimosa.
“Implats notes with concern the statements made by the Zimbabwean Minister of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere, with regard to Implats’ stake in Mimosa Platinum,” the company said.
The minister said in order to facilitate indigenisation, the company should dispose of its interest in Mimosa and leave Aquarius Platinum Limited as the shareholder of reference for funding and technical support.
But the platinum giant said it was still to receive notification from Government on the matter.
“To date, the company has not received any official notification in this regard from the Government of Zimbabwe”, read part of the statement.
Minister Kasukuwere said the JSE-listed firm should dispose of its interests in the Zimbabwean unit to meet the country’s equity laws. The Indigenisation and Economic Empowerment Act compels foreign companies to localise 51 percent of their shareholding.
Minister Kasukuwere indicated that Implats should concentrate on Zimplats while Aquarius should offload 1 percent to locals. This would give locals 50 percent from Implats and an additional 1 percent from Aquarius.
The minister was quoted in our sister paper, The Sunday Mail, as saying: “Having two majority shareholders splitting the non-indigenous 49 percent, with each holding 24,5 percent will be very damaging for Mimosa, as investment will become a portfolio investment for both companies, and the company will be left without a shareholder of reference for funding and technical support.”
Meanwhile, as part of meeting the empowerment laws, Mimosa has since given a 10 percent stake to Zvishavane communities as more mining companies comply with the law. The platinum mining company also pledged US$10 million towards community development programmes in the same area.
The firm became the largest mining entity after Zimplats and Unki to give 10 percent to locals.
The mining sector will be fully indigenised by December this year and community share ownership schemes are spreading to all mining companies in the country.
Government is expected to create a Sovereign Wealth Fund to cater for communities not endowed with minerals.