Business / Companies
Implats' ordered to revise its Zimbabwe indigenisation termsheets
29 Aug 2013 at 05:13hrs | Views
Impala Platinum has been notified by the Zimbabwe government that its termsheets on indigenisation need to be revisited. The Company has been informed that the Government wishes to review the termsheet and discussions in this regard are ongoing.
The respective termsheets referred to above stipulate the key terms, subject to certain conditions precedent, for the sale by Mimosa and Zimplats of an aggregate 51% equity ownership of Mimosa Pvt and Zimbabwe Pvt respectively to select indigenous entities.
The termsheets setting the conditions for the proposed Indigenisation Plans for both Mimosa and Zimplats were submitted in December 2012 and January 2013 respectively.
Discussions are ongoing. Zimplats has lodged a formal objection and a compensation claim for the compulsory land acquisition gazetted on 1 March 2013.
On 14 December 2012 Implats announced that its 50% held joint venture Mimosa had concluded a non-binding termsheet in respect of a proposed indigenisation implementation plan (IIP) with the Government of Zimbabwe. On 11 January 2013 Implats further announced that its 87% held subsidiary, Zimplats, had similarly concluded a non-binding termsheet in respect of a proposed IIP.
The definitive transaction agreements have not yet been negotiated and concluded, but could critically affect the accounting treatment of these Implats's Zimbabwe investments in future.
Production
Ore milled at Zimplats increased by 6.6% to 4.7 million tonnes while platinum in matte increased by 5.9% to 198 100 ounces despite the smelter fire in December 2012 which necessitated a shutdown of 21 days. Platinum unit costs in matte increased by 5.5% mainly due to US$ inflation of 6.2% offset by the increase in platinum production. The unit costs for the year were US$1 307 (2012: US$1 239) per platinum ounce in matte.
Tonnes milled at Mimosa rose 25% to 2.4 million for the year and platinum in concentrate reduced by 5.4% to 100 300 ounces. Mimosas unit costs increased by 22.6% to US$1 782 per platinum ounce in concentrate mainly due to the lower production, Zimbabwean inflation, the impact of a stock rebuild exercise post the 2012 fire and the higher usage of plant chemicals and reagents.
At Zimplats, the new Phase 2 concentrator plant was successfully commissioned in April 2013. The rated throughput of the plant has been achieved and the build-up of ore reserves through the new Mupfuti portal (Portal 3) is progressing on target.
Construction of the underground crusher at the portal is scheduled for commencement in January 2014 with anticipated completion by August 2014. Full production from this project of 90 000 ounces of platinum per annum is planned to be achieved in 2015, which will take total production to 270 000 ounces of platinum per annum.
The respective termsheets referred to above stipulate the key terms, subject to certain conditions precedent, for the sale by Mimosa and Zimplats of an aggregate 51% equity ownership of Mimosa Pvt and Zimbabwe Pvt respectively to select indigenous entities.
The termsheets setting the conditions for the proposed Indigenisation Plans for both Mimosa and Zimplats were submitted in December 2012 and January 2013 respectively.
Discussions are ongoing. Zimplats has lodged a formal objection and a compensation claim for the compulsory land acquisition gazetted on 1 March 2013.
On 14 December 2012 Implats announced that its 50% held joint venture Mimosa had concluded a non-binding termsheet in respect of a proposed indigenisation implementation plan (IIP) with the Government of Zimbabwe. On 11 January 2013 Implats further announced that its 87% held subsidiary, Zimplats, had similarly concluded a non-binding termsheet in respect of a proposed IIP.
Production
Ore milled at Zimplats increased by 6.6% to 4.7 million tonnes while platinum in matte increased by 5.9% to 198 100 ounces despite the smelter fire in December 2012 which necessitated a shutdown of 21 days. Platinum unit costs in matte increased by 5.5% mainly due to US$ inflation of 6.2% offset by the increase in platinum production. The unit costs for the year were US$1 307 (2012: US$1 239) per platinum ounce in matte.
Tonnes milled at Mimosa rose 25% to 2.4 million for the year and platinum in concentrate reduced by 5.4% to 100 300 ounces. Mimosas unit costs increased by 22.6% to US$1 782 per platinum ounce in concentrate mainly due to the lower production, Zimbabwean inflation, the impact of a stock rebuild exercise post the 2012 fire and the higher usage of plant chemicals and reagents.
At Zimplats, the new Phase 2 concentrator plant was successfully commissioned in April 2013. The rated throughput of the plant has been achieved and the build-up of ore reserves through the new Mupfuti portal (Portal 3) is progressing on target.
Construction of the underground crusher at the portal is scheduled for commencement in January 2014 with anticipated completion by August 2014. Full production from this project of 90 000 ounces of platinum per annum is planned to be achieved in 2015, which will take total production to 270 000 ounces of platinum per annum.
Source - www.businessdaily.co.zw
