Platinum and other precious metal mining companies operating in Zimbabwe are close to signing indigenisation agreements with the country's government.

Indigenisation and economic empowerment minister Saviour Kasukuwere said 45 mining firms had their plans for local ownership approved.

However, 51 had ignored a two-week deadline on providing the government with a blueprint of how each would transfer a 51 per cent equity stake to local black investors.

Kasukuwere said a deal with Aquarius on its Mimosa mine is imminent, while he would not provide details on Anglo American Platinum's offer. An agreement with Rio Tinto's Murowa mine has been reached, he added.

Zimplats, the Zimbabwean unit of Impala Platinum (Implats), has been told it could lose its mining licence after it failed to agree to the indigenisation policy.

Kasukuwere said the company "continues to defy the laws of this land, continues to abuse the process".

He added: "We would like Zimplats to continue mining but if they continue to disregard the laws of the country we are left with no option but to invoke the provisions of the law. Zimplats will have to live with the consequences of their actions."

Zimplats confirmed that it had received a letter from the Department of Youth Development, Indigenisation and Empowerment that said the company's

Indigenisation Plan "does not meet the minimum requirements of the law" and that a request has been made to the minister of mines and mining development to cancel the company's operating licence.

The miner said the only major area of disagreement is the implementation, in its current form, of the Release of Ground Agreement of 2006, which sees the miner release 51 million ounces of platinum or 99 million ounces of 4E (platinum, palladium, rhodium and gold).

In a statement, Zimplats said: "The government acknowledges the existence and validity of the agreement, but wants to renegotiate certain terms of the agreement.

"Shareholders are advised that the company's operating licence has not been cancelled and discussions between management and the relevant authorities in this regard are on-going."

Meanwhile, Bloomberg reports that Zimplats has proposed using an independent arbitrator to resolve the dispute.

Sources:







Impala must improve on 2006 Zim deal (08/09/11)



Impala’s Zimplats Proposes Arbitrator to Help Resolve Zimbabwe Law Dispute (08/09/11) 

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