[miningmx.com] – ZIMBABWE’s Minister for Youth Development,
Indigenisation and Empowerment, Saviour Kasukuwere, confirmed a Reuters report
earlier today that a proposal by the shareholders of Mimosa Platinum Mines (Mimosa)
– to part with 51% of their shares – had been accepted by government.
Mimosa, which produces about 100,000 ounces/year of platinum group metals, is
owned by UK and South African-listed Aquarius Platinum and Impala Platinum
(Implats) on a 50:50 basis. Implats recently had a proposal accepted to sell 31% of
its shares in Zimplats to the Zimbabwean government. Both proposals are in terms of
Zimbabwe’s indigenisation legislation, which asks foreign-owned companies to sell
control of their Zimbabwe-based assets.
Kasukuwere also indicated the Zimbabwean government was no longer insisting that
Impala remove itself as a shareholder in Mimosa. “The Mimosa plan we are happy
with and, with regards to Impala and Aquarius, that is now a matter between them,’
said Kasukuwere in a texted message to Miningmx.
Kasukuwere said in February that Implats should take itself out of Mimosa as
government only wanted to deal with a single shareholder. Happily for Implats, that
scenario now seems to have been dismissed.
Aquarius Platinum CEO, Stuart Murray, said the company had not seen evidence of a
firm arrangement, and declined to comment on the Reuters article.
Reuters reported earlier today that Implats and Aquarius would transfer 10% each to
workers and local communities, 6% to state employees and 25% to a state fund. The
state fund was most likely via the National Indigenisation and Economic
Empowerment Board (NIEBB), the same institution to which Implats is poised to
transfer 31% in Zimplats.
The Mimosa deal mirrors the structure of Implats’ arrangement last week where, in
addition to the 31% in Zimplats to the NIEBB, a further 10% of Zimplats would be
distributed to workers through an employee share ownership programme (Esop), and
a further 10% to the local Zimplats community.
The community distribution and Esop would be vendor-financed, repaid through
Zimplats dividend flow, but the NIEBB was expected to pay for the 31% stake based
on a valuation yet to be negotiated between the parties.
“They [Implats and Aquarius] have submitted a compliant 51% plan. It has since
been submitted to the ministry, which has been accepted,’ Kasukuwere told Reuters.
