[miningmx.com] – SAVIOUR Kasukuwere, Zimbabwe’s Minister of Youth
Development, Indigenisation and Empowerment, said he stood by a demand
issued at a public rally earlier this week that Impala Platinum (Implats) relinquish its
shareholding in its 50% held Mimosa Platinum.
He also said he had drafted letters to Implats and Anglo American Platinum
(Amplats), informing the two South African platinum producers that Zimbabwe’s
indigenisation laws should be complied with as a matter of haste.
In response, David Brown, the outgoing CEO of Implats, said he had had no
discussions with senior Zimbabwe government authorities on the company’s
stake in Mimosa Platinum or regarding proposals the company submitted in
November to Kasukuwere’s office concerning its indigenisation plans. Zimbabwe has
passed legislation calling for 51% local ownership of all foreign-held assets.
Analysts suggested the heightened rhetoric from the Zimbabwean government on the
matter of foreign investment was a prelude to the call by President Robert Mugage,
who turns 88 years old today, for national elections. If re-elected, Mugabe could be
in power for a further five years, which would extend his rule over Zimbabwe to up to
37 years.
“Impala must be out of Mimosa. We are much happier negotiating with one partner,’
said Kasukuwere. Implats shares Mimosa with Aquarius Platinum on an equal
shareholding basis, but if both companies were to comply with indigenisation
demands, they would each hold a 24.5% stake, thus leaving a Zimbabwe government
nominated company with 51%. Implats also owns 87% of Zimplats, the country’s
largest platinum producer and the company that should be Implats’s sole vehicle in
Zimbabwe, said Kasukuwere.
Speaking to a crowd on Sunday, Kasukuwere was quoted as saying: “Implats cannot
be allowed to maintain a 24.5% portfolio investment in Mimosa while they have their
hands full with the massive capital expenditure that will be required at Zimplats.’
“I don’t think there is any legal status for Impala having to sell its entire stake in
Mimosa,’ said Brown in a telephonic interview. “To be honest, I’m quite stunned
about this. I never heard of a request like that before.
“I think that Impala has become a bit of a pressure point in terms of their [Zimbabwe
government’s] approach. It’s quite naive to think that you can only have one
shareholder; there’s no logical answer,’ he added.
Said Kasukuwere on indigenisation: “The time for negotiation is over. We are writing
a letter today to Implats and Anglo Platinum’s Unki that the shares in those
companies should be transferred to the National Indigenisation and Economic
Empowerment Board,’ he said in a telephonic interview with Miningmx.
“We cannot delay this and we would like to have this concluded before national
elections,’ Kasukuwere added.
Brown said that Implats was happy to engage in discussions if it were approached by
the Zimbabwean government on the matter of its shareholding in Mimosa, or
regarding indigenisation in general. “I have had no dialogue this calendar year other
than local-level talks,’ said Brown.
Brown declined to comment on the likelihood the company’s indigenisation proposal
would be accepted by the Zimbabwean government. “I’ll leave that to them,’ he
said. “I’m working on the assumption that all parties want a viable mining industry
and that we just have different approaches,’ said Brown.
Aquarius Platinum CEO, Stuart Murray, said he had not received any proposals
regarding shareholder changes in Mimosa. He declined to comment further.
