Zimplats not willing to transfers 51 percent to Zimbos: CEO

Impala Platinum, which owns 87 percent of Zimplats and has a 50 percent interest in Zvishavane-based Mimosa Platinum Mine, is not willing to hand over full control to Zimbabwean and wants to retain full control of its Zimbabwe operations Zimplats and is confident it will not have to transfer 51 percent of the stake to locals, chief executive David Brown said on Thursday while presenting Implats results at the Summer Place in the poshy suburb of Hyde Park in Johanneburg South Africa.

Defiant Brown said "We are confident that it will not be at 51 percent equity. We believe that negotiations are ongoing with government and we believe an adequate and appropriate level of ownership is one that will be final result," he said at a presentation after the group unveiled its annual results.

"We are not necessarily willing sellers," he said, adding the group also wanted to retain majority control over the operations there.

Brown insists that the three-part plan it has already submitted is compliant with the law.

The plan involves a 26 percent equity transfer with the balance (to reach 51 percent) made of social investment projects and a prior agreement with the government.

He said they can go as much as releasing only 26 percent to Zimbabweans, anything above 26 percent in equity is not acceptable to them.

"We reckon that's somewhere between 25 percent and 26 percent – we're quite happy with that. Still, people should understand there are real cost associated to that. If people give you a cheque up front there would be no cost associated," Brown said.

Brown said they are still in discussion with the government on the way forward.

Empowerment Minister, Saviour Kasukuwere last week gave Zimplats and a number of other foreign firms operating in Zimbabwe 14 days to submit indigenization proposals complaint with the country's laws or risk having their local assets seized by the government.

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 Blanket, Mimosa and Murowa Diamonds have been given a two-week ultimatum to refine their indigenisation plans or risk losing their licences.