Kazakhstan mining giant to pull out of Zim?

international arm — Central African Mining and Exploration Company plc which it acquired in 2009 — from its core asset in Kazakhstan.
The international arm consists of African mining projects in Zimbabwe, the Democratic Republic of Congo, Mozambique, South Africa and Zambia.
ENRC said in a recent statement that it was “determined to deliver value to its shareholders and continued to review all methods to achieve this, including acquisitions, joint ventures and spin-offs.”
It, however, hastened to point out that “no decision has yet been made”. ENRC’s Zimbabwean assets consist principally of its 60 percent stake in the Todal Mining platinum mining claims (also known as the “Bokai platinum project”), following its acquisition of CAMEC.
It is running the Bokai project as joint venture partnership with the Zimbabwe Mining Development Corporation.
Reports in 2010 had also hinted at the company scouting for coal assets in the country, but nothing in that respect has materialised.
Although the plans to dispose of its international arm is not necessarily reflective of the value of the assets contained therein, ENRC has since expressed concern at growing difficulties in the regulatory environment in some of its areas of operation.
The company said in a recent supplementary statement to its latest annual financial report that it was concerned about regulatory measures being implemented by some Governments in countries were it operates.
“We are an emerging markets business and most of the group’s operations are based in fast developing emerging markets economies.
“Our business could be adversely affected by the behaviour of, or new regulations that could be introduced by, the governments of the countries concerned.
“For example re-nationalisation, controls on imports, exports and sales prices, terms of mining and other licences, restriction on foreign ownership of assets, restriction on the remittance of funds and new forms or rates of taxation, duties and royalties; or new policies or systems,” said the company.
Foreign investors have been apprehensive about the ongoing indigenisation drive.
ENRC has since submitted its indigenisation proposals to the Government and will only need to indigenise 11 percent of stake in the Bokai project since it is already a 60-40 joint-venture with the ZMDC.
ENRC is involved in the production and selling of ferroalloys, iron ore, alumina and aluminum, non-ferrous metals and energy.
The miner also has operations in China, Russia and Brazil.