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SA Plats 'pragmatic' as Zim crisis worsens Posted: Tue, 27 Mar 2007 [miningmx.com] -- SOUTH African platinum producers say they’ll take a pragmatic approach to continuing problems in Zimbabwe, even though billions of rand pledged in investment are at risk there. Recent reports by the UK's The Times suggest that Zimbabwean president, Robert Mugabe, is being levered out by politicians both inside and outside Zimbabwe. This comes as the country's maize crop fails and country faces famine - a development styled by opposition party, Movement for Democratic Change, as "the world’s greatest humanitarian crisis". “Zim is a place you take one month at a time, one quarter at a time,” said Stuart Murray, Aquarius Platinum CEO. “There’s no point in scenario planning.” What’s quite extraordinary is that the dearth of platinum supplies has forced Impala, Anglo Platinum and Aquarius Platinum to invest in Zimbabwe whereas similar investments elsewhere – such as the Democratic Republic of Congo, which is now emerging from a period of civil strife – would be deemed foolhardy. Aquarius has a 50% stake in Mimosa, a small, highly profitable platinum company in Zimbabwe. About $23m will be spent between Aquarius and its partner, Impala, expanding the mine. But Impala’s far greater Zimbabwean exposure is through its 86.9% held Zimplats. It’s to invest $258m developing two underground mines at Ngezi in Zimbabwe. The decision to build the mines came after Impala signed an empowerment deal with the Zimbabwean government. In essence, Impala sold a third of its resources for around 30% empowerment credits. The bombshell is that the Zimbabwean government is asking for 51% empowerment and wants foreign investors to allow it to nominate suitable partners. The situation is potentially nightmarish but could change if speculation concerning Mugabe’s possible demise is to be believed. A March 18 report in London’s Sunday Times said Zimbabwe’s former army chief Solomon Mujuru was threatening to oust Mugabe. The International Monetary Fund has also turned up the heat on Mugabe, saying that the country’s parlous economic state must be solved or inflation could reach 5,000% by year-end. Where that puts the indigenisation plan is anyone’s guess. Murray said agreements have to be honoured but Aquarius is largely uncommitted on its empowerment plans in Zimbabwe. Click Here to subscribe to our daily newsletter
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