Business / Companies
Zimbabwe to cancel Zimplats licence over empowerment
06 Sep 2011 at 17:57hrs | Views
Zimbabwe is set to cancel Zimplats' operating licence owing to its
failure to comply with the Indigenisation and Economic Empowerment Act.
51 other mining firms are also facing trouble after having failed to submit their indigenisation proposals.
The decision to cancel Zimplats' operating licence has been reached after several attempts by the government of Zimbabwe to engage the platinum mining giant under the indigenisation programme failed to yield positive results.
Addressing a news conference in Harare this Tuesday, The Minister of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere said the platinum mining firm has expressed arrogance towards the country's laws leaving the government with no option but to enforce the laws of the country.
Kasukuwere further highlighted that submissions from the financial service sector are not satisfying but expressed optimism that an agreement will be reached in the near future as discussions are currently underway.
Besides Zimplats, Mimosa mining firm is yet to comply with the laws of the land.
However the platinum mining giant said it is engaged in negotiations with government.
Kasukuwere also indicated that Old Mutual has been given one week to comply with their proposed plan through implementation.
Zimplats has failed to comply with the Indigenisation Act, citing that the government owes the firm US$151 million, which translate to 30% stake but the government has indicated willingness to pay for anything that the company wants to offload.
He also said Harare had reached an agreement with Rio Tinto's Murowa mine to achieve 51 percent local ownership, while a deal was "imminent" for Aquarius' Mimosa mine. "Zimplats continues to defy the laws of this land, continues to abuse the process," Kasukuwere told reporters.
51 other mining firms are also facing trouble after having failed to submit their indigenisation proposals.
The decision to cancel Zimplats' operating licence has been reached after several attempts by the government of Zimbabwe to engage the platinum mining giant under the indigenisation programme failed to yield positive results.
Addressing a news conference in Harare this Tuesday, The Minister of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere said the platinum mining firm has expressed arrogance towards the country's laws leaving the government with no option but to enforce the laws of the country.
Kasukuwere further highlighted that submissions from the financial service sector are not satisfying but expressed optimism that an agreement will be reached in the near future as discussions are currently underway.
Besides Zimplats, Mimosa mining firm is yet to comply with the laws of the land.
However the platinum mining giant said it is engaged in negotiations with government.
Kasukuwere also indicated that Old Mutual has been given one week to comply with their proposed plan through implementation.
Zimplats has failed to comply with the Indigenisation Act, citing that the government owes the firm US$151 million, which translate to 30% stake but the government has indicated willingness to pay for anything that the company wants to offload.
He also said Harare had reached an agreement with Rio Tinto's Murowa mine to achieve 51 percent local ownership, while a deal was "imminent" for Aquarius' Mimosa mine. "Zimplats continues to defy the laws of this land, continues to abuse the process," Kasukuwere told reporters.
Source - Reuters
