Zimbabwe grabs Impala Platinum unit's land

4 March 2013

Land belonging to Impala Platinum and its Zimbabwe unit Zimplats is to be seized by the country's government.

Harare plans to grab 27,498 hectares of the miner's property, with the company given 30 days to appeal the move.

"The president intends to acquire compulsorily part of the land held by Zimplats Holdings Ltd under special mining lease," a statement in the Government Gazette said.

Implats, the world's second biggest platinum producer, agreed earlier this year to give up a 51% stake in its Zimplats operation to local black investors under the controversial indigenisation law.

The latest land grab appears to have come as a surprise to the platinum miner, though analysts were not so taken aback.

"This sort of thing always happens, especially with elections now expected in July. The government is trying to be popular but these developments affect relations and perceptions among investors," Zimbabwe economic analyst Jeffrey Kasirori told South Africa's Business Day.

The publication also notes that Zimbabwean mines minister Obert Mpofu said last month that the government was unhappy with contributions from platinum mining companies, which seems to have precipitated the land grab.

He also told platinum miners they had up to two years to set-up a refinery inside Zimbabwe.

Sources:

Impala Unit's Land Is Grabbed by Zimbabwe With 30 Days to Appeal (01/03/13)

Zimplats given 30 days to appeal land grab (01/03/13)