Business / Companies
Zimplats taking all the money to South Africa: Mugabe
28 Feb 2011 at 09:31hrs | Views
Robert Mugabe has claimed that Zimbabwe is not benefitting from its vast mineral resources and accused the country's leading platinum producer, Zimplats, of "taking all the money" to South Africa.
Zimplats runs the country's biggest platinum mining operations in the Ngezi and Selous areas and controls a 50 percent interest in the Zvishavane-based Mimosa platinum mine.
However, speaking during his 87th birthday celebrations in Harare on Saturday Mugabe claimed the country was not benefitting from the investment.
"Zimplats has never given us any substantial money," Mugabe said. "They are taking all the money to South Africa that's why I have told (Empowerment Minister Saviour) Kasukuwere to deal with those mines.
Zimplats – which reported a 150 percent jump in net profits to US$85 million the half year period to December 2010 – is majority controlled by South Africa-based Impala Platinum (Implats), the world's second largest platinum producer.
Impala recently announced work had started on a US$500 million expansion programme at Zimplats adding talks were continuing with the government over compliance with empowerment laws which require all foreign-owned companies to localise at least 51 percent of their shareholding.
Meanwhile Mugabe also threatened to seize the local operations of global foods conglomerate, Nestle after the company refused to buy milk from a farm owned by his wife, Grace.
"Nestle refused to buy milk from Gushungo dairies," he told a crowd of about 6 000 supporters.
"I told Kasukuwere to begin with them and tell them he was sent by Gushungo. We should deal with them; let them get out of the country."
Mugabe also threatened unspecified action against Western companies operating in Zimbabwe unless sanctions are removed.
The Zimbabwean leader wants sanctions imposed by the West over allegations of electoral fraud and rights abuses removed claiming they are responsible for the country's economic collapse over the last decade and continue to hold back efforts to ensure sustained recovery.
Zimplats runs the country's biggest platinum mining operations in the Ngezi and Selous areas and controls a 50 percent interest in the Zvishavane-based Mimosa platinum mine.
However, speaking during his 87th birthday celebrations in Harare on Saturday Mugabe claimed the country was not benefitting from the investment.
"Zimplats has never given us any substantial money," Mugabe said. "They are taking all the money to South Africa that's why I have told (Empowerment Minister Saviour) Kasukuwere to deal with those mines.
Zimplats – which reported a 150 percent jump in net profits to US$85 million the half year period to December 2010 – is majority controlled by South Africa-based Impala Platinum (Implats), the world's second largest platinum producer.
Impala recently announced work had started on a US$500 million expansion programme at Zimplats adding talks were continuing with the government over compliance with empowerment laws which require all foreign-owned companies to localise at least 51 percent of their shareholding.
Meanwhile Mugabe also threatened to seize the local operations of global foods conglomerate, Nestle after the company refused to buy milk from a farm owned by his wife, Grace.
"Nestle refused to buy milk from Gushungo dairies," he told a crowd of about 6 000 supporters.
"I told Kasukuwere to begin with them and tell them he was sent by Gushungo. We should deal with them; let them get out of the country."
Mugabe also threatened unspecified action against Western companies operating in Zimbabwe unless sanctions are removed.
The Zimbabwean leader wants sanctions imposed by the West over allegations of electoral fraud and rights abuses removed claiming they are responsible for the country's economic collapse over the last decade and continue to hold back efforts to ensure sustained recovery.
Source - Byo24News
