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cancelling platinum giant Zimplats’ operating licence after efforts to persuade the firm to comply with indigenisation requirements failed to yield desired results.
Addressing journalists on progress made on the indigenisation process yesterday, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, said discussions with Zimplats, owned by Implats of South Africa, had reached the end of the road.
Foreign-owned firms are required, in terms of the Indigenisation and Empowerment Act, to sell at least 51 percent shareholding to locals as a way to bring into the mainstream economy previously marginalised Zimbabweans.
Minister Kasukuwere said his ministry would engage the Ministry of Mines and Mining Development with a view to initiate the process to revoke the operating licence of Zimplats.
The firm has been accused of continuing to give excuses that include claims it had achieved 30 percent indigenisation after releasing to Government for empowerment mineral reserves it claims are worth US$150 million.
The Government dismissed Zimplats’ claims and insisted that it would rather pay for the mineral reserves released and still direct the platinum miner to cede at least 51 percent of its shareholding to local investors.
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Other mining companies, among them Murowa Diamonds, Caledonia, New Dawn and Blanket, which initially had their proposals rejected and were given ultimatums after submitting unacceptable plans, have come up with agreeable revised plans that now await final approval.
Multibay Investments, Quali Exploration and Kwekwe Consolidated Mines had their plans approved by Government.
The minister was yesterday due to meet Mimosa Mining Company managing director, Mr Winston Chitando to finalise a position regarding the platinum mining firm’s indigenisation and empowerment proposals.
“But Zimplats continues to defy the laws of this land, Zimplats continues to abuse the process. We have in many instances tried to engage them in a manner that achieves our objectives of a win-win situation,” said the minister.
“We have tried to negotiate. They come forward and take six steps back and therefore we have taken the position to deem them non-compliant in terms of provisions of the Indigenisation Act,” said Minister Kasukuwere.
He lamented a situation where Zimplats wanted the Government to pay for mineral rights the firm did not pay for. Zimplats is sitting on an estimated US$4 billion worth of platinum group of metals and recently posted a US$200 million profit, but was not forthcoming as far as discussions to sell 51 percent stake to locals is concerned.
Zimplats, along with British American Tobacco, Nestle, Cargill, Barclays and Standard Chartered (Zimbabwe) were given seven to 14-day ultimatums to come up with acceptable plans after their initial proposals were rejected. The 14 days have since elapsed.
BAT has since agreed with Government on a revised implementation framework and a review of its shareholding revealed a significant portion of its shareholding was local and needs to localise an estimated 15 percent.
But Old Mutual Zimbabwe has been given a seven day ultimatum to come up with a response regarding its failure to implement the indigenisation and empowerment proposal agreed with the Government back in 2009.
While indigenisation plans submitted by Barclays and Standard Charted were rejected, Minister Kasukuwere will hold discussions with Finance Minister Tendai Biti to reach a final position regarding the banking sector.
However, Stanbic Bank has been directed to honour the pledge made by Grindlays to Government, when it sold to Stanbic Bank in 1992, that 30 percent of its shareholding would be transferred to indigenous people.
Minister Kasukuwere said recommendations on indigenisation of the manufacturing, transport, agriculture and agro-processing, education, sports and entertainment sectors were now awaiting approval from the Cabinet. Recommendations by the National Indigenisation and Economic Empowerment Board on engineering, construction, telecommunications, ICT, finance, arts, culture, energy, trading and health sectors were still under discussion.
Online Reporter