News / Regional
Vumbachikwe Mine given 21-day ultimatum
04 Oct 2013 at 15:32hrs | Views
THE National Indigenisation and Economic Empowerment Board (NIEEB) has issued a 21-day ultimatum to Vumbachikwe Mine to comply with the Indigenisation Act.
Vumbachikwe Mine, located 16km from Gwanda Town is one of the companies under the country's Indigenisation Regulations should dispose 10percent of its shares to the community.
Other contributing mining companies in Gwanda, Blanket Mine, Pretoria Portland Cement (PPC), Jessie Mine and Farvic have complied with the Indigenisation Act and through the Gwanda Community Share Ownership Trust the funds have been utilised in the undertaking of numerous developmental projects.
The Indigenisation and Economic Empowerment Act Chapter 14:33 mandates that at least 51percent of foreign owned businesses in Zimbabwe be controlled by indigenous Zimbabweans.
However, Vumbachikwe Mine has been defiant and to date failed to contribute anything despite the progress made by other companies.
NIEEB chief executive officer Mr Wilson Gwatiringa has therefore given the mine 21 days to submit its final indigenisation plan.
"…..It was resolved that Duration Gold would dispose 10percent to NIEEF and revise its offer of one million seed capital to the Community Share Ownership Trust. We note that you have not submitted a consolidated and final indigenisation and Implementation Plan.
"In the interest of finalising your compliance process, you are kindly advised to submit the aforesaid revised and final indigenisation and Implementation Plan (IIP) in favour of indigenous Zimbabweans within 21days from the date of this letter," read part of the letter dated 25 September 2013 directed to the mine director, a Mr E. M Smithwick.
The Minister of State responsible for Matabeleland South Provincial Affairs Abedinico Ncube on Thursday summoned Vumbachikwe mine manager Mr Russen Thomas Chittenden and handed over the letter to him in a meeting in Gwanda Town.
The meeting was also attended by some Gwanda CSOT board members among them the board chairman Chief Mbiko Masuku.
Source - Byo24News
