adminover its indigenisation and empowerment plan after its initial proposal was turned down earlier this month.
Updating shareholders, Zimplats yesterday said Minister of Youth, Indigenisation and Economic Empowerment Saviour Kasukuwere informed the company that he had rejected its indigenisation plan.
The company said the minister had since issued a directive that the revised plan be resubmitted within a period of 14 days from the date they received the letter on August 17, 2011.
This means that Zimplats has to submit their revised empowerment plan by September 1, 2011.
“Minister of Indigenisation and Economic Empowerment informed the company that he had rejected the Zimplats Indigenisation Plan submitted to him in early May 2011 and directed that a revised plan which, in his view, complies with the legislation be resubmitted within a period of 14 days,” said the company.
Zimplats said a number of other foreign mining companies had also received similar letters from the minister, with a 14-day ultimatum.
“Discussions between management and the relevant authorities in this regard are on-going,” added Zimplats.
In its discussions with the relevant authorities to meet the empowerment regulations Zimplats included the issue of equity and empowerment credits for the release of mineral rights to the Government in terms of an agreement entered into in 2006.
Zimplats was also seeking empowerment credits in respect of investment in social projects.
Upon its indigenisation framework being approved by Government, Zimplats said modalities of the company’s listing on the Zimbabwe Stock Exchange would be considered.
The minister had earlier indicated that most submissions by mining companies were inadequate.
Failure by most mining companies to comply with the indigenisation law comes at a time when Government has since indicated that empowerment credits had been discarded in favour of direct equity disposal to communities, workers and management.
It is also understood that Zimplats has reserved about 13 million ordinary shares worth about US$140 million for take-up under indigenisation.
Online Reporter