Impala Platinum has questioned whether new plans to deliver majority control of companies to indigenous people in Zimbabwe are workable.

David Brown, Chief Executive of Impala Platinum, has suggested that the draft proposals may be unworkable in their current form.

Under the so-called indigenisation bill, 51 per cent of any company would have to be sold to the Zimbabwean government or local entities nominated by the government.

Mr Brown explained that at present Impala is looking to invest as much as R3 billion in expanding its Zimplats operations, but under the current proposals 51 per cent of this finance would have to come from the government or the local entities.

He asked: "Does the state have any money to fund platinum expansions? Where do they get the management?"

The comments come after Zimplats Chairman Mike Houston told MiningMX that the bill also appears to take no account of an agreement struck between Zimplats and the Zimbabwean government in 2006. Then, the company had agreed to sell mineral rights to the government equal to roughly 30 per cent of Zimplats.

Mr Houston explained: "At this juncture, although it's early days in terms of the negotiations, there appears to be no provision for empowerment credits for social and infrastructure spending in the draft bill and this is of serious concern to Zimplats in view of our agreement with the government."

Source:

Impala questions Zim draft proposal, 30/08/07
http://www.miningmx.com/platinum/499659.htm

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