Business / Companies
Kasukuwere agrees to suspend the cancellation of Blanket Mine's licence
23 Aug 2011 at 10:21hrs | Views
Caledonia Mining Corporation, owners of the Blanket Mine, says it has resolved a dispute with the Zimbabwean government over the future ownership of the company's Blanket gold mine in the southern African country.
Under the settlement announced Tuesday, Caledonia will resubmit a new plan to sell control of the mine to black Zimbabwean owners under a national law that went into effect last year.
As well, the government will suspend plans to cancel the operating licence for the mine.
The company and government met Monday and "agreed on a process that will result in the production of a revised Indigenization Implementation Plan for Blanket Mine that is compliant with the Indigenization and Economic Empowerment Act," said a joint statement released before North American stock markets opened Tuesday.
"The plan will take into account the independently verified intrinsic value of the mineral resources, plant and equipment at the mine," the statement said.
A new empowerment law that forces foreign companies to sell a majority stake in their businesses to black Zimbabweans came into effect last year and required Caledonia to submit an indigenization plan with the government.
Caledonia said last week it presented such a plan, but the country's minister responsible for the policy has asked the mines minister to revoke Blanket's operating licence "on the grounds that Caledonia's proposal does not meet the legislated indigenization requirements."
Blanket's operations continued normally while the company dealt with the dispute.
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.
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.
Under the settlement announced Tuesday, Caledonia will resubmit a new plan to sell control of the mine to black Zimbabwean owners under a national law that went into effect last year.
As well, the government will suspend plans to cancel the operating licence for the mine.
The company and government met Monday and "agreed on a process that will result in the production of a revised Indigenization Implementation Plan for Blanket Mine that is compliant with the Indigenization and Economic Empowerment Act," said a joint statement released before North American stock markets opened Tuesday.
"The plan will take into account the independently verified intrinsic value of the mineral resources, plant and equipment at the mine," the statement said.
Caledonia said last week it presented such a plan, but the country's minister responsible for the policy has asked the mines minister to revoke Blanket's operating licence "on the grounds that Caledonia's proposal does not meet the legislated indigenization requirements."
Blanket's operations continued normally while the company dealt with the dispute.
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.
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.
Source - Byo24News
