Business / Companies
Blanket mine set to lose licence in Zim mine grab
22 Aug 2011 at 23:49hrs | Views
THE Government has so far approved 39 indigenisation plans submitted by foreign owned mines and has indicated that it will cancel the licence for Blanket Mine after it failed to meet its minimum requirements, The Herald Online reported on Tuesday.
According to statistics released Friday by the Ministry of Youth Development, Indigenisation and Empowerment, Blanket Mine that is owned by the Caledonia Mining Corporation of Canada failed to submit an acceptable indigenisation plan within the set period.
Caledonia is a Canadian company listed on the Toronto, New York and London stock exchanges with a portfolio of exploration, development and mining assets in Zambia, South Africa and Zimbabwe.
The Gwanda-based Blanket Mine recently recorded a 300 percent increase in second quarter profits on the back of record world market prices and a significant ramp up in production.
Gold output for the second quarter topped 8 226 ounces up 12 percent on the previous quarter and some 141 percent over the comparable period last year.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere on Friday said that he had written to the Ministry of Mines and Mining Development recommending that Blanket Mine's licence be revoked.
"We have been talking to them for some time now and it would appear they are refusing to comply and this leaves us with no choice but to take action and cancel their licence," he said.
Among some of the companies whose plans were approved by the ministry are Dorowa Minerals Limited, Kadoma Gold Projects, New Dawn, Exploration Mining, Anjin Investments, Interfin Resources, Zimbabwe Alloys, Buchwa Iron Mining Company and African Mills and Minerals.
Minister Kasukuwere said that his ministry would continue to peruse the plans that have been lodged by the mining firms to ensure that the process is completed ahead of the September 30 deadline that has been set.
Mining firms had previously resisted the Government's position demanding 51 percent shareholding in foreign owned companies, opting instead to offer social credits as part fulfilment of the indigenisation requirements.
Minister Kasukuwere, who has maintained that workers and the communities should instead get direct equity, rejected this position.
Other mining giants including Zimplats, Mimosa and Murowa Diamonds have been given a two-week ultimatum to refine their indigenisation plans or risk losing their licences.
According to statistics released Friday by the Ministry of Youth Development, Indigenisation and Empowerment, Blanket Mine that is owned by the Caledonia Mining Corporation of Canada failed to submit an acceptable indigenisation plan within the set period.
Caledonia is a Canadian company listed on the Toronto, New York and London stock exchanges with a portfolio of exploration, development and mining assets in Zambia, South Africa and Zimbabwe.
The Gwanda-based Blanket Mine recently recorded a 300 percent increase in second quarter profits on the back of record world market prices and a significant ramp up in production.
Gold output for the second quarter topped 8 226 ounces up 12 percent on the previous quarter and some 141 percent over the comparable period last year.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere on Friday said that he had written to the Ministry of Mines and Mining Development recommending that Blanket Mine's licence be revoked.
"We have been talking to them for some time now and it would appear they are refusing to comply and this leaves us with no choice but to take action and cancel their licence," he said.
Among some of the companies whose plans were approved by the ministry are Dorowa Minerals Limited, Kadoma Gold Projects, New Dawn, Exploration Mining, Anjin Investments, Interfin Resources, Zimbabwe Alloys, Buchwa Iron Mining Company and African Mills and Minerals.
Minister Kasukuwere said that his ministry would continue to peruse the plans that have been lodged by the mining firms to ensure that the process is completed ahead of the September 30 deadline that has been set.
Mining firms had previously resisted the Government's position demanding 51 percent shareholding in foreign owned companies, opting instead to offer social credits as part fulfilment of the indigenisation requirements.
Minister Kasukuwere, who has maintained that workers and the communities should instead get direct equity, rejected this position.
Other mining giants including Zimplats, Mimosa and Murowa Diamonds have been given a two-week ultimatum to refine their indigenisation plans or risk losing their licences.
Source - TH
