Implats satisfied as Zimbabwe clarifies BEE rules 13th October 2004

The Zimbabwean government has sought to clarify the rules governing the Black Economic Empowerment (BEE) initiative being introduced in the country.

Tinaye Chigudu, permanent secretary of the Zimbabwean ministry of mines, told Mineweb that companies concluding empowerment deals before the new minerals bill comes into effect will not be required to change the details of the contracts.

Mr Chigudu said that the rules contained in a draft proposal leaked to the media last week - which put indigenous equity ownership at 20 per cent in two years, 25 per cent in seven years, and 30 per cent after ten - would only apply moving forward and not to those firms that have already entered negotiations.

The comments have reassured mining giant Impala Platinum which has been seeking clarification on its position since last week's news.

Implats executive director Les Paton hailed the news, describing it as "exactly the sort of clarity we will be seeking".

Implats is already in discussions regarding the sale of 15 per cent of the Mimosa mine to a consortium of indigenous Zimbabweans, with that deal now unlikely to be threatened by the new BEE proposals.

Meanwhile, Mr Chigudu revealed that further work was necessary in order to finalise plans for empowerment ahead of it coming into law.

He said that the ministry was awaiting responses from interested parties, with further discussions planned before the bill is brought before parliament.


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