Zimplats, the Zimbabwean subsidiary of platinum mining firm Impala Platinum, has announced that it is suspending an empowerment transaction.

The company is halting the sale of 15 per cent of its stock to locals because of concerns over the indigenisation and empowerment bill currently making its way through parliament in Zimbabwe.

State-owned newspaper the Herald reports that the 15 per cent stake, established as part of Zimplats' black economic empowerment (BEE) initiative in the country, will not be sold off as had originally been planned because the company is currently awaiting the finalisation of the bill.

Zimplats has already raised a number of concerns over the introduction of the indigenisation bill in its current form, with Chairman Mike Houston saying that it is at present "unworkable".

He added: "Shareholders should be aware that the concern for Zimplats extends beyond its own empowerment obligation which the company is keen to conclude.

"There is likely to be a negative impact, if the proposed legislation is passed in its current format, on those foreign owned companies that provide essential services to Zimplats."

Source:

Zimbabwe: Zimplats Halts Empowerment Deal, 5/09/07
http://www.herald.co.zw/

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