[miningmx.com] — IMPALA Platinum said on Monday it “noted with
concern’ statements attributed to a Zimbabwean official that it has to sell its
interest in Mimosa Platinum and leave Aquarius Platinum as the sole foreign
shareholder.
This came after state-owned Sunday Mail reported that, according to Minister
of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere,
Implats had too much control over the country’s platinum sector.
Should Mimosa comply to the letter of Zimbabwe’s indigenisation laws, Impala’s
interest would be reduced to a 24.5% stake, with Aquarius also holding 24.5%.
According to Kasukuwere’s ideal, Aquarius should shore up its stake to 49%, with the
remainder going to local investors.
“Implats cannot be allowed to maintain a 24.5% portfolio investment in Mimosa while
they have their hands full with the massive capital expenditure at Zimplats,’
Sunday Mail quoted Kasukuwere.
“They cannot have their cake and eat it too. They have to make space for Aquarius,
as Mimosa is a very significant investment for Aquarius, but is a drop in the ocean for
Implats.
“Having two minority shareholders splitting the non-indigenous 49%, with each
holding 24.5%, will be very damaging for Mimosa, as the investment will become a
portfolio investment for both Aquarius and Implats, and the company will be left
without a shareholder of reference for funding and technical support; neither of them
will be sufficiently incentivised to support any meaningful capital expenditure, and
the company will not be able to embark on the next expansion phase to double
production.’
The paper also quotes Mimosa’s Managing Director, Winston Chitando, who said the
company was pressing ahead to with its expansion programmes despite the changes
in shareholding that the indigenisation regulations were demanding.
“We are planning phase six mine expansion and we have undertaken a feasibility
study,’ Chitando said. “The expansion would bolster revenue generation, profitability,
operational costs and annual platinum output, which currently stands at 195,000 oz
per annum.’
The report further mentioned how Mimosa has changed the face of the Zvishavane
area in which it operates; commissioning 11 boreholes, a “state-of-the-art’ mortuary
at the district hospital, six classrooms and toilets at Dadaya Primary School as well
as another primary school.
In response to the report, Implats said on Monday it “noted with concern’ the
statements made by Kasukuwere.
“To date, the company has not received any official notification in this regard from
the Government of Zimbabwe,’ it said.
