Impala Platinum is well-placed to see out the current period of uncertainty in the Zimbabwean mining sector resulting from black empowerment legislation, its Chief Executive Officer claims.

President Mugabe's government recently passed legislation stipulating that all foreign-owned firms must transfer 51 per cent of their shareholding to indigenous black Zimbabweans - a development that caused concern over the viability of mining operations in the territory.

However, in an interview with Mining MX, Impala Platinum CEO David Brown remained upbeat on the situation in Zimbabwe on the grounds that he expects the government to honour a previously agreed sale of one-third of its subsidiary Zimplats in return for localisation credits.

Through this deal the firm has already achieved somewhere "between 30 per cent and 40 per cent" of its empowerment target, suggesting it will not be affected by the legislation, he added.

Under the terms of Impala Platinum's deal with Mr Mugabe's government, Zimplats received 19.5 per cent of localisation credits, and a further $51 million in cash.

The contract also stipulates that in the event of no cash being received, this will rise to 29 per cent - with Zimplats still awaiting payment.

Summary:

Impala's Brown positive on Zim, 21/11/07
http://www.miningmx.com/profiles/680759.htm

Zimbabwe to transfer shareholdings of foreign miners, 19/11/07
http://www.metalmarkets.org.uk/2007/11/19/zimbabwe-to-transfer-shareholdings-of-foreign-miners/

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