adminThe country’s second largest platinum mining company also pledged US$10 million towards community development programmes in Zvishavane.
The Indigenisation and Economic Empowerment Act compels foreign-owned firms to sell at least 51 percent stake to indigenous Zimbabweans.
Mimosa became the third high profile mining company to give 10 percent shareholding to local communities after Zimplats and Unki.
The platinum-mining firm is 50 percent owned by Aquarius and 50 percent owned by Impala Platinum, which also owns Zimbabwe Platinum Mines.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere on Monday said the community share ownership scheme would be officially launched soon.
“This (meeting) was a community briefing before the official launch of the scheme,” he said at a meeting attended by chiefs from Zvishavane and the media at his offices.
“It is the first phase of their compliance programme and they have given 10 percent shareholding to the community.”
Minister Kasukuwere said the Government will pay for investments of foreign companies that failed to comply and assume their ownership.
He said President Mugabe will soon launch the scheme after Mimosa and the Zvishavane communities reached an agreement, which they have signed.
The deed of transfer for the shares will be registered ahead of the official launch and presentation of share certificates to the communities. A community share trust with wide representation will be formed.
Mimosa is worth about US$1 billion, meaning the Zvishavane community now own at least US$100 million of the giant platinum extractor.
Indigenisation and economic empowerment are taking shape and most mining firms have already submitted proposals on how they intend to comply.
The US$10 million Mimosa pledged for developmental projects will go towards addressing critical issues such as irrigation infrastructure.
Expectations are that the shareholding in Mimosa will help Zvishavane communities to leverage the stake for investment in various sectors of the economy.
Minister Kasukuwere dismissed recent claims by Canadian firm Caledonia Mining Company that indigenisation was a political gimmick ahead of elections scheduled for next year.
“If you do not want to comply, we will take over, simple and straightforward,” he said.
“Government is actively focused on achieving total control of our economy. For those who do not accept our laws we will pay for their investment and the rest will be for our people and we move on.”
Discussions with Caledonia, which owns Blanket Mine, have reached a dead end and there is a possibility that Government might compensate the Canadian firm and take over the mine.
Indigenisation, said Minister Kasukuwere, was meant to bring the marginalised into the mainstream economy and creation of jobs while growing the economy.
This comes amid concerns that out of US$2 billion worth of mineral exports, only about US$150 million accrues to Treasury in the form of royalties.
Minister Kasukuwere said the mining sector will be fully indigenised by December next year and that indigenisation was an irreversible Government programme.
Community share ownership schemes will soon spread to all mining companies in Zimbabwe.
The Government will create a Sovereign Wealth Fund to cater for communities not endowed with minerals.
Bongani Ndlovu
Online Reporter