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Yesterday, Impala Platinum, the majority shareholder in Zimplats said it had objected the Government plans, and “all stakeholders will be kept informed of developments”.
But Deputy Mines and Mining Development Minister Mr Gift Chimanikire said in an interview Zimplats had no basis for objecting because “what is gazetted effectively becomes law.”
“Their position is another thing. This is a law and cannot be just objected,” he said.
In a statement yesterday, Impala said: “Impala Platinum Holdings Limited confirms that its subsidiary, Zimbabwe Platinum Mines lodged an objection on 27 March 2013 to the
Preliminary Notice published in General Notice 123 of 2013 in the Zimbabwean Government Gazette Extraordinary of 1 March 2013 with regard to the President’s intention to acquire compulsorily 27 948 hectares of land held by Zimplats.”
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Zimplats is among foreign owned companies that have agreed to comply with the country’s indigenisation policy which essentially requires then to turnover their majority shareholding to black Zimbabweans.
The law requires foreign owned companies to dispose at least 51 percent of their shareholding to locals.
Zimplats has agreed to transfer 10 percent to the local community trust, 10 percent to workers and the balance to the National Indigenisation and Economic Empowerment Fund to achieve 51 percent local shareholding thresholds.
Implats agreed to sell the 51 percent stake for US$818 million, by loaning Zimbabwe the money that would be paid back by foregoing dividends in 10 years once implemented.
The total value of the deal would be US$971 million and this includes US$53 million the platinum giant is owed by the Government for the land repossessed in 2006.
The company is the biggest platinum miner in Zimbabwe and is in the middle of a US$460 million expansion of its Ngezi operations to jolt output to 270 000 ounces by 2014.
In 2011, Zimplats launched the US$10 million Mhondoro-Chegutu-Zvimba community share ownership scheme as part of compliance with the indigenisation regulations of Zimbabwe.
Other platinum companies that have complied with the laws include Anglo Platinum local unit, Unki Mine and Mimosa, jointly owned by Implats and Aquarius. – Business Reporter/New Ziana.
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