[miningmx.com] — ZIMBABWE’S Mimosa mine, a joint venture between Impala Platinum and Aquarius, has given a 10% stake to locals, a government minister said on Monday, as it aims to meet a controversial law on local ownership.
The local units of British banks Barclays Plc and Standard Chartered Plc have offered to sell 10% stakes, although the government believes that is not enough, Youth and Empowerment Minister Saviour Kasukuwere also told reporters.
President Robert Mugabe’s drive to force mines and banks to surrender at least 51% shares to locals has unnerved overseas investors and further divided the government Mugabe formed with rival Prime Minister Morgan Tsvangirai in 2009.
“This is the first phase of (Mimosa’s) compliance, they have given 10% shareholding to the community after reaching an agreement with the community and have already signed,” Kasukuwere said.
The offers from the two UK banks were “paltry”, Kasukuwere said, adding the government would continue discussions with the lenders.
“We have said to them the fact that you are giving us carrots does not change the law,” he said. “If they had that (10%) proposal some five to seven years ago we shouldn’t be talking about indigenisation.”
Kasukuwere said South Africa’s Standard Bank Group had presented a “comprehensive plan” for its Stanbic Zimbabwe unit which the government was reviewing.
Cash-strapped Zimbabwe has no money to pay for the majority stakes but Kasukuwere has previously said the government owned the minerals in the ground and would use their value to calculate shareholding in the mining companies.
Mugabe told supporters at an annual conference over the weekend that he would not back down from pursuing a programme some critics fear may damage the recovery of an economy emerging from a decade of decline.
