Business / Companies

South Africa to block the indigenisation of Zimplats

by Staff reporter
07 Mar 2012 at 10:44hrs | 1 Views
THE South African government signalled for the first time in public yesterday it was taking an active interest in efforts by Zimbabwe to implement its 51% of the local operations of Implats, the world's second-largest platinum miner, reported BusinessDay.

BusinessDay of South Africa recently reported that SA's Department of International Relations and Co-operation Director-General Lionel October said his country was in negotiations with the Zimbabwean government to ensure South African investments were protected from indigenisation in terms of the bilateral investment and trade agreement with Zimbabwe.

Different corporate structures could be used by South African companies to accommodate the indigenisation law, without having to lose assets or investments.

October is said to have revealed that the bilateral agreement between the two countries (Zimbabwe and South Africa) is law and they have been given the undertaking that it will be upheld.

The agreement, ratified by SA last year and gives South African companies recourse if their assets are seized without compensation.

The same newspaper quotes a South African minig law expert at Webber Wentzel who said while a tribunal might rule in a company's favour against Zimbabwe, the biggest problem was prising any financial award from the Zimbabwean government.

Source - Indigenisation,Implats,Zimplats