News / National
Zim's empowerment law is not about seizure of assets: Mashakada
01 Sep 2011 at 09:27hrs | Views
The Minister of Economic Planning and Investment Promotion, Tapiwa Mashakada on Thursday said Zimbabwe's empowerment law, which requires foreign miners to transfer 51 percent equity stakes in local entities to black investors, is "flexible" and does not aim to seize or nationalise assets.
The Indigenisation and Economic Empowerment Act, signed in 2008, has been driven by President Mugabe's ZANU-PF party, but has been criticised by Prime Minister Morgan Tsvangirai, who shares power with Mugabe in a fragile coalition.
"It is a flexible law and investors are given time to comply. It's not about seizure of assets, it's not about expropriation," Mashakada said at an industry conference in Perth, Australia.
Last month, several foreign mining firms, including Zimplats a unit of Impala Platinum, and the Mimosa platinum mine owned by Aquarius , Rio Tinto's Murowa diamond mine and Caledonia's Blanket gold mine received letters directing them to submit fresh empowerment plans within 14 days or risk losing operating licences.
The local units of British banks Barclays and Standard Chartered Bank and of British American Tobacco were also given the two-week ultimatum.
Some of the letters were dated Aug. 17 and others Aug. 19, and so the deadlines would hit on Wednesday or Friday this week. Several such deadlines, however, have passed without incident.
Last week, the chief executive of Impala Platinum (Implats) said its Zimbabwe operations would "limp along", but that its operations would be hampered by the empowerment law.
Mashakada said the law may prove difficult for some miners, but he said that some exemptions to the law have already been made, pointing to Indian conglomerate Essar Group.
"For big mining firms, you may not be able to readily get a partner who can take up the 51 percent. The 51 percent is not going to be nationalised. It's not going to be expropriated," Mashakada said.
Essar agreed to buy 54 percent in the Zimbabwe Iron and Steel Company (ZISCO) for $750 million, with the government keeping 36 percent and 10 percent owned by minority investors.
The Indigenisation and Economic Empowerment Act, signed in 2008, has been driven by President Mugabe's ZANU-PF party, but has been criticised by Prime Minister Morgan Tsvangirai, who shares power with Mugabe in a fragile coalition.
"It is a flexible law and investors are given time to comply. It's not about seizure of assets, it's not about expropriation," Mashakada said at an industry conference in Perth, Australia.
Last month, several foreign mining firms, including Zimplats a unit of Impala Platinum, and the Mimosa platinum mine owned by Aquarius , Rio Tinto's Murowa diamond mine and Caledonia's Blanket gold mine received letters directing them to submit fresh empowerment plans within 14 days or risk losing operating licences.
The local units of British banks Barclays and Standard Chartered Bank and of British American Tobacco were also given the two-week ultimatum.
Some of the letters were dated Aug. 17 and others Aug. 19, and so the deadlines would hit on Wednesday or Friday this week. Several such deadlines, however, have passed without incident.
Last week, the chief executive of Impala Platinum (Implats) said its Zimbabwe operations would "limp along", but that its operations would be hampered by the empowerment law.
Mashakada said the law may prove difficult for some miners, but he said that some exemptions to the law have already been made, pointing to Indian conglomerate Essar Group.
"For big mining firms, you may not be able to readily get a partner who can take up the 51 percent. The 51 percent is not going to be nationalised. It's not going to be expropriated," Mashakada said.
Essar agreed to buy 54 percent in the Zimbabwe Iron and Steel Company (ZISCO) for $750 million, with the government keeping 36 percent and 10 percent owned by minority investors.
Source - Times
