Business / Economy
Zimbabwe takes over all mining firms
05 Apr 2012 at 07:07hrs | Views
Controversial minister of Youth, Indigenisation and Empowerment Savior Kasukuwere says all foreign owned mining houses operating in Zimbabwe that did not comply with indigenization regulations have lost their 51 percent shareholding.
Kasukuwere, in a public notice released today (Thursday) warned any firm that they risk prosecution is the try to defraud government in any transaction.
The controversial Indigenisation and Economic Empowerment Act issued in 2010 required all foreign firms valued at more than $500,000 to sell 51 percent stakes to locals.
Kasukuwere said affected firms should note that 51 percent of their shareholding is now deemed to be owned by the state.
"All mining companies that have not complied with this notice should note that 51 percent of their shareholding is now deemed to be owned by the state and any business transacted in respect to this 51 percent shall have need transacted on behalf of the Government of Zimbabwe with effect from the deadline stipulated in the said General Notice 114 of 2011, which deadline for the avoidance of doubt was 25 September 2011," said Kasukuwere.
"Any profits accruing to the 51 percent should be regarded as property of the State and any losses incurred will be charged against the company's assets, less 51 percent indigenized portion, for any company that transacts without Government involvement with effect from 25 September 2011," added Kasukuwere.
The government empowerment has worried investors in one of the few sectors of Zimbabwe's economy that has continued to attract foreign capital following the collapse of the key agriculture sector, which critics blame on Mugabe's seizure of white-owned farms for blacks.
Major international firms with interests in Zimbabwe include the world's number one platinum miner Anglo Platinum, Rio Tinto and Implats.
Impala Platinum, the world's second-biggest platinum producer finally gave in to pressure and ceded 51 percent stake in its Zimplats unit to local black investors.
Recently, all foreign mining firms were ordered to deposit their export earnings with local banks.
Kasukuwere, in a public notice released today (Thursday) warned any firm that they risk prosecution is the try to defraud government in any transaction.
The controversial Indigenisation and Economic Empowerment Act issued in 2010 required all foreign firms valued at more than $500,000 to sell 51 percent stakes to locals.
Kasukuwere said affected firms should note that 51 percent of their shareholding is now deemed to be owned by the state.
"All mining companies that have not complied with this notice should note that 51 percent of their shareholding is now deemed to be owned by the state and any business transacted in respect to this 51 percent shall have need transacted on behalf of the Government of Zimbabwe with effect from the deadline stipulated in the said General Notice 114 of 2011, which deadline for the avoidance of doubt was 25 September 2011," said Kasukuwere.
The government empowerment has worried investors in one of the few sectors of Zimbabwe's economy that has continued to attract foreign capital following the collapse of the key agriculture sector, which critics blame on Mugabe's seizure of white-owned farms for blacks.
Major international firms with interests in Zimbabwe include the world's number one platinum miner Anglo Platinum, Rio Tinto and Implats.
Impala Platinum, the world's second-biggest platinum producer finally gave in to pressure and ceded 51 percent stake in its Zimplats unit to local black investors.
Recently, all foreign mining firms were ordered to deposit their export earnings with local banks.
Source - Byo24News
