Business / Economy
Zimbabwe empowerment policy does not work and is hurting the country: Implats
25 Aug 2011 at 07:40hrs | Views
The chief executive of Impala Platinum, the world's second largest platinum producer, said on Thursday that a drive by the Zimbabwean government to force foreign miners to transfer 51 percent of their local equity stakes to black investors in the country could not work and was hurting the country.
"We believe that 51 percent equity just does not work," David Brown said on a conference call with journalists after the group unveiled full year results that showed headline earnings per share had soared over 40 percent on higher prices.
"What they are doing is very bad for the country ... and has the potential to retard investment," he said in comments that were unusually blunt for a company official on the issue. He also said the company wanted to see the law changed.
Implats has a huge stake in the outcome of the situation as its Zimbabwe unit Zimplats accounts for close to 10 percent of group production.
Brown also said the group's platinum output for the 2012 financial year would likely decline to 1.7 million ounces from just over 1.83 million in the past year as old infrastructure becomes less productive. But as new shafts ramp up the company is aiming for 2 million ounces by 2014.
"We believe that 51 percent equity just does not work," David Brown said on a conference call with journalists after the group unveiled full year results that showed headline earnings per share had soared over 40 percent on higher prices.
Implats has a huge stake in the outcome of the situation as its Zimbabwe unit Zimplats accounts for close to 10 percent of group production.
Brown also said the group's platinum output for the 2012 financial year would likely decline to 1.7 million ounces from just over 1.83 million in the past year as old infrastructure becomes less productive. But as new shafts ramp up the company is aiming for 2 million ounces by 2014.
Source - Reuters
