Business / Companies
Zimplats will not abandon its operations in the country
07 Mar 2013 at 07:20hrs | Views
ALEX Mhembere, CEO of Impala Platinum's (Implats') unit in Zimbabwe says Zimplats will not abandon its operations in the country despite the fresh waves of uncertainty the company is facing.
Mhembere's comments come as mines and mining development minister, Obert Mpofu announced plans to hike platinum fees. Implats will own 49% of Zimplats in terms of a deal to sell shares in line with Zimbabwe's indigenisation policy.
Mpofu, who last month said platinum miners in Zimbabwe would be required to set-up a refinery in the next two years, said on Wednesday that raw platinum exports would attract high charges than processed platinum ore.
"We have become a source of cheap raw material and we need to improve on the value of our minerals," he said.
South African platinum miners, which have looked to expand into Zimbabwe, have been hit by fresh woes after agreeing to comply with indigenisation policies giving away majority control of foreign companies into the hands of local citizens and groups.
Despite this, and the government's move to take over nearly 28,000 hectares of claims owned by Zimplats, Mhembere said the local unit of world number two platinum producer, Implats was committed to continuing with its operations in the country.
"Zimplats remains focused on the full development of its mining resources and a sustained positive contribution to the country and people of Zimbabwe. Consultations with the relevant government authorities are in progress," said Mhembere.
He said the platinum miner had "diligently implemented its investment and mining development programmes" in Zimbabwe even during the most difficult period in the country's history "which was characterised by hyperinflation" before the economy was dollarised in 2008.
President Robert Mugabe heaped the pressure on South African platinum miners operating in Zimbabwe saying recent indigenisation transactions were "a mistake" and that the minister responsible for crafting them (Saviour Kasukuwere, youth development, empowerment and indigenisation minister) "did not quite understand what was happening".
He added that he was unhappy to repay vendor financing, a critical part of the deals in which Implats, Aquarius Platinum and Anglo American Platinum 'sold' 51% of their shares in platinum mines in Zimbabwe.
Mining experts said on Wednesday the government's plans to raise platinum mining royalties and charges would be in contrast to the deal signed by Implats under which the government is required to lower down payable royalties and fees.
"This has always been the problem. There is so much contrast between ministries; the Empowerment Ministry committed to lowering royalties in the Zimplats indigenisation deal," said a source.
Kasukuwere has meanwhile, said that he will seek to implement Mugabe's demands that Implats give up 51% control in Zimplats for free.
The indigenisation deals signed by Kasukuwere have been criticised as there is concern that the Minister did not follow due procedure.
Mhembere's comments come as mines and mining development minister, Obert Mpofu announced plans to hike platinum fees. Implats will own 49% of Zimplats in terms of a deal to sell shares in line with Zimbabwe's indigenisation policy.
Mpofu, who last month said platinum miners in Zimbabwe would be required to set-up a refinery in the next two years, said on Wednesday that raw platinum exports would attract high charges than processed platinum ore.
"We have become a source of cheap raw material and we need to improve on the value of our minerals," he said.
South African platinum miners, which have looked to expand into Zimbabwe, have been hit by fresh woes after agreeing to comply with indigenisation policies giving away majority control of foreign companies into the hands of local citizens and groups.
Despite this, and the government's move to take over nearly 28,000 hectares of claims owned by Zimplats, Mhembere said the local unit of world number two platinum producer, Implats was committed to continuing with its operations in the country.
"Zimplats remains focused on the full development of its mining resources and a sustained positive contribution to the country and people of Zimbabwe. Consultations with the relevant government authorities are in progress," said Mhembere.
President Robert Mugabe heaped the pressure on South African platinum miners operating in Zimbabwe saying recent indigenisation transactions were "a mistake" and that the minister responsible for crafting them (Saviour Kasukuwere, youth development, empowerment and indigenisation minister) "did not quite understand what was happening".
He added that he was unhappy to repay vendor financing, a critical part of the deals in which Implats, Aquarius Platinum and Anglo American Platinum 'sold' 51% of their shares in platinum mines in Zimbabwe.
Mining experts said on Wednesday the government's plans to raise platinum mining royalties and charges would be in contrast to the deal signed by Implats under which the government is required to lower down payable royalties and fees.
"This has always been the problem. There is so much contrast between ministries; the Empowerment Ministry committed to lowering royalties in the Zimplats indigenisation deal," said a source.
Kasukuwere has meanwhile, said that he will seek to implement Mugabe's demands that Implats give up 51% control in Zimplats for free.
The indigenisation deals signed by Kasukuwere have been criticised as there is concern that the Minister did not follow due procedure.
Source - www.miningmx.com
