Impala Platinum has agreements in place with firms that comply with black empowerment legislation passed by the Zimbabwean government, the company's chief executive has announced.

Earlier this week, President Mugabe's government passed a law compelling all foreign-owned companies to cede a controlling 51 per cent share to indigenous black Zimbabweans.

The development had raised fears that Impala Platinum would be forced to dilute its stake in the Mimosa mine in Zimbabwe, in which it has 50-50 ownership with Aquarius.

However, according to David Brown, Chief Executive of Impala Platinum, the firm has already moved towards complying with the legislation.

He told Reuters: "As far as we are concerned we have agreements in place and these will be taken into account when looking at the overall compliance. In principle we support the aims [of] localisation."

Since news of the legislation broke, Aquarius Platinum's shares have plunged 132p to £17.31 - a drop of seven per cent.

Sources:

Foreign firms assess new Zimbabwe ownership bill, 27/09/07
http://africa.reuters.com/wire/news/usnL27372910.html

Aquarius battered by Zimbabwe move
http://business.timesonline.co.uk/tol/business/markets/article2547772.ece

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