[miningmx.com] — Shares in South African-listed platinum miners tumbled on Monday after Zimbabwean President Robert Mugabe said he would press on with plans to sell majority shareholdings in foreign miners to local blacks.
Impala Platinum (IMP), which has operations in Zimbabwe, fell over 5% at one point and was trading 4.30% lower at R189.15 rand in morning trade.
London-listed Aquarius Platinum, which also has Zimbabwean operations, was down over 5% in Johannesburg at R38.77 while Anglo Platinum (AMS) was down over 2% to R664.52.
“I think this is because of the Zimbabwean story,’ said Abri du Plessis, chief investment officer at Gryphon Asset Management.
“That 51% that they want in local hands looks fairly fixed at this point in time so that’s basically driving the platinum down.’
Earlier, Aquarius released a statement saying that its Zimbabwean operating subsidiary, Mimosa Mining Company, was engaged in discussions with the relevant authorities in Zimbabwe in order to establish a position that will be compliant with the Indigenisation and Economic Empowerment Act and beneficial to stakeholders.
Further information would be made available as and when discussions had been finalised, it said.
The Zimbabwean government gazetted the Indigenisation and Economic Empowerment Act in 2007. The Act made provision for the indigenisation of up to 51% of all foreign-owned businesses operating in Zimbabwe.
Regulations in support of the Act were subsequently published in February 2010 in preparation for the implementation of the provisions of the Act. The Minister of Youth, Indigenisation and Economic Empowerment on Friday published a statutory instrument in the Zimbabwean Government Gazette, setting out the requirements for the implementation of the provisions of the Indigenisation and Economic Empowerment Act and its supporting regulations as they pertain to the mining sector.
