News / National
Zimbabwe stops negotiating with foreign miners on indigenisation
24 Feb 2012 at 06:23hrs | Views
GOVERNMENT has stopped negotiations with mining firms over the implementation of the indigenisation and empowerment policy and expects companies to submit acceptable plans within two weeks.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, said this yesterday when he appeared before the Parliamentary Portfolio Committee on Gender, Youth and Community Development.
"We have had challenges that some companies were dilly dallying and we are no longer going to negotiate with them. We have closed all negotiations with mining firms and what we want is to see compliance with the law.
"We were perhaps the only country that allowed foreigners to scoop our minerals without benefiting locals. We have now indicated to them, about 20 to 30 companies that were dilly-dallying, that the time for negotiations is over. We have given them two weeks to lodge their plans on transfer of shares," Minister Kasukuwere said.
The minister said just over 50 companies had submitted acceptable indigenisation plans since Government gazetted indigenisation regulations last year.
"From the date of publication of the General Notice 114 of 2011 my ministry has received over 200 indigenisation implementation plans from mining businesses, of which 54 have been approved as they meet legal requirements.
"Other proposals are still being assessed and there are indications that some of them will be approved with necessary adjustments," he said.
Platinum companies Zimplats, Unki and Mimosa have already submitted their indigenisation plans with President Mugabe subsequently launching Community Share Ownership Trusts.
Caledonia mining firm also submitted its proposals that were accepted last week.
Minister Kasukuwere commended Meikles and Schweppes for coming up with plans that empowered their employees.
"Employee share ownership schemes as in the case of Schweppes led to an increase in production from about 30 percent to 75 percent and improves industrial relations between workers and management," he said.
Minister Kasukuwere said the indigenisation drive will also compel companies to appoint boards and management that reflect the aims of the policy. He said Zimbabweans had the capabilities to run most of the companies operating in Zimbabwe.
Minister Kasukuwere said despite protests from some quarters and Government ministers he will not be swayed to implement the law.
"There is a law and I am not going to negotiate with anyone in its implementation. If anyone wants to change the indigenisation law they must bring it to Parliament. None of them (the three principals) said they do not want the law. We sit together in Cabinet and they have never said they do not want the law.
"The companies that refuse to comply will leave us no option but to take them over, the law is clear on that one," he said.
Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, said this yesterday when he appeared before the Parliamentary Portfolio Committee on Gender, Youth and Community Development.
"We have had challenges that some companies were dilly dallying and we are no longer going to negotiate with them. We have closed all negotiations with mining firms and what we want is to see compliance with the law.
"We were perhaps the only country that allowed foreigners to scoop our minerals without benefiting locals. We have now indicated to them, about 20 to 30 companies that were dilly-dallying, that the time for negotiations is over. We have given them two weeks to lodge their plans on transfer of shares," Minister Kasukuwere said.
The minister said just over 50 companies had submitted acceptable indigenisation plans since Government gazetted indigenisation regulations last year.
"From the date of publication of the General Notice 114 of 2011 my ministry has received over 200 indigenisation implementation plans from mining businesses, of which 54 have been approved as they meet legal requirements.
"Other proposals are still being assessed and there are indications that some of them will be approved with necessary adjustments," he said.
Platinum companies Zimplats, Unki and Mimosa have already submitted their indigenisation plans with President Mugabe subsequently launching Community Share Ownership Trusts.
Caledonia mining firm also submitted its proposals that were accepted last week.
Minister Kasukuwere commended Meikles and Schweppes for coming up with plans that empowered their employees.
"Employee share ownership schemes as in the case of Schweppes led to an increase in production from about 30 percent to 75 percent and improves industrial relations between workers and management," he said.
Minister Kasukuwere said the indigenisation drive will also compel companies to appoint boards and management that reflect the aims of the policy. He said Zimbabweans had the capabilities to run most of the companies operating in Zimbabwe.
Minister Kasukuwere said despite protests from some quarters and Government ministers he will not be swayed to implement the law.
"There is a law and I am not going to negotiate with anyone in its implementation. If anyone wants to change the indigenisation law they must bring it to Parliament. None of them (the three principals) said they do not want the law. We sit together in Cabinet and they have never said they do not want the law.
"The companies that refuse to comply will leave us no option but to take them over, the law is clear on that one," he said.
Source - TH
