Zimplats has been forced to put its Ngezi Phase 2 expansion programme on hold, it was confirmed yesterday (12th May).

The largest platinum producer in Zimbabwe is investing $445 million in order to lift output of the precious metal at the site from 180,000 oz per year to 270,000 oz per year.

Although it has won board approval for the move, it must now wait for the correct status of the country's controversial black economic empowerment regulations to be determined.

"Project commencement is dependent on finalisation of compliance issues regarding the Indigenisation and Economic Empowerment Act and the accompanying regulations that were recently gazetted," said the company.

The regulations, which require foreign miners to provide at least 51 per cent of their shareholdings to local black-run companies, were suspended last month.

President Robert Mugabe has now extended the deadline for firms to demonstrate how they intend to meet this target to Saturday (15th May).

Zimplats is a subsidiary of Impala Platinum, which is the world's second-largest producer of platinum.

Source:

South African platinum miner suspends Zimbabwe programme (12/05/10)

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