Business / Companies
Zimplats' local spend increases to $49 million
05 Aug 2013 at 05:31hrs | Views
ZIMPLATS, the country's largest platinum miner, has spent about US$50 million in three months to June this year on procurement of goods from local firms, the company has said. This was 16 percent higher than what the company spent during the previous quarter ended March 31 and it excluded payments to Government-related institutions.
"The company's local spend increased from US$42 million to US$49 million . . . in line with the company's commitment to the development of local industry," said Zimplats.
Government is in the process of coming up with a policy that restricts foreign procurement of raw materials and other equipment by companies to give preference to local suppliers. Zimplats, a subsidiary of Impala Platinum Mines, said it paid US$30 million to the Government in taxes, 6 percent lower than the previous quarter due to a reduction in corporate tax payments arising from the lower prices.
During the quarter, platinum prices were 10 percent lower than in the March quarter, while the palladium and rhodium prices were 4 percent and 2 percent lower, respectively.
Early this year, Implats signed a term sheet agreement with Government on how in intends to dispose its 51 percent shareholding to indigenous black Zimbabweans to comply with the indigenisation and empowerment laws which requires foreign-owned companies to turnover their majority shareholdings to locals.
Government has accepted the plan which involves the transfer of 10 percent to employees, another 10 percent to a community trust and 31 percent going to a State fund.
"Discussions with the Government on the indigenisation plan are ongoing," said Zimplats.
"The company's local spend increased from US$42 million to US$49 million . . . in line with the company's commitment to the development of local industry," said Zimplats.
Government is in the process of coming up with a policy that restricts foreign procurement of raw materials and other equipment by companies to give preference to local suppliers. Zimplats, a subsidiary of Impala Platinum Mines, said it paid US$30 million to the Government in taxes, 6 percent lower than the previous quarter due to a reduction in corporate tax payments arising from the lower prices.
During the quarter, platinum prices were 10 percent lower than in the March quarter, while the palladium and rhodium prices were 4 percent and 2 percent lower, respectively.
Early this year, Implats signed a term sheet agreement with Government on how in intends to dispose its 51 percent shareholding to indigenous black Zimbabweans to comply with the indigenisation and empowerment laws which requires foreign-owned companies to turnover their majority shareholdings to locals.
Government has accepted the plan which involves the transfer of 10 percent to employees, another 10 percent to a community trust and 31 percent going to a State fund.
"Discussions with the Government on the indigenisation plan are ongoing," said Zimplats.
Source - herald
