Mining sector reforms near completion

Zimbabweans or State-approved agencies.
National Indigenisation and Economic Empowerment Board general manager Mr Zwelibanzi Lunga told Bloomberg online publication that mostly Chinese and Asian mining companies had complied with the law.
According to statistics released by NIEEB, 260 companies had submitted transfer plans to the Government, with 69 approved, 14 rejected and 177 still pending.
“The Government will invoke penalty provisions, such as cancellation of operating licences if companies don’t comply,’’ said Mr Lunga.
He added that 15 companies had been given approval for community share ownership trusts and employee share ownership plans, which result in mining firms ceding 10 percent each to the community and employees.
Zimbabwe Platinum Mines, Mimosa and Anglo Platinum have already launched their employee share option schemes and community share ownership schemes.
Chamber of Mines of Zimbabwe president Mr Winston Chitando told journalists on Wednesday that equity laws were “company specific”.
He said negotiations between the Government and individual companies were continuing and that both parties would reach an agreement.
“We have not received a directive from Government that all mining companies should cede 51 percent, but we understand that it is company specific,” said Mr Chitando.
Impala Platinum Holdings Ltd, the world’s second-largest producer of the metal, in March agreed in principle to sell 31 percent of its Zimplats unit to NIEEB and 20 percent to employees and communities. Impala owns 87 percent of Zimplats.
Aquarius Platinum, which owned the Mimosa Platinum Mine with Impala, in March submitted a proposal to hand over control of the operation to Zimbabwe, which accepted the plan.
The empowerment board expects foreign companies in the manufacturing industry to transfer majority stakes to locals by September next year.
Out of the 256 manufacturing companies that have applied, 128 have been approved, 125 are pending, and three have been declined.
Zimbabwe Stock Exchange-listed, British American Tobacco and Pretoria Portland Cement’s local units have complied. The Indigenisation and Economic Empowerment Act is meant to address economic imbalances that existed in shareholding structures of most foreign firms operating in the country.
Thus all foreign entities with a minimum turnover of US$500 000 are required to cede 51 percent of their shares to locals.