Implats sets Mar. 13 showdown with Kasukuwere

[miningmx.com] – IMPALA Platinum (Implats) has been granted an
extension until March 13 to comply with Zimbabwe’s indigenisation laws that require
foreign-owned companies to hand over control of assets to the government.

“David [Brown, CEO of Implats] has asked that he meet with his board on Friday
[March 9] and then he will travel to Harare to meet with the Chairman of the National
Indigenisation and Economic Empowerment Fund (NIEEF), David Chapfika,’ said
Saviour Kasukuwere, the minister responsible for indigenisation.

Asked whether Implats had agreed to part with 51% of its shares in its 87%-owned
Zimplats, its key platinum asset in Zimbabwe, Kasukuwere said: “This is not a
question of compliance, it is a question of implementation.’

In an interview with Miningmx, Kasukuwere also said he remained steadfast
in his intention to see Implats reverse out of its 50% shareholding in Mimosa
Platinum Mines. On February 24, Kasukuwere dealt Implats a 30-day ultimatum to
quit its stake in Mimosa.

In a letter dated March 6 and addressed to Kasukuwere, Brown said he was
committed to finding a solution, but he stopped short of promising to part with 51%
in Zimplats. “For the record we confirm Implats’ and its Zimbabwean subsidiaries’
commitment to finding an equitable and mutually acceptable resolution going
forward,’ Brown wrote.

MINISTERS DISAGREE

According to some sources, Kasukuwere failed to convince Mines Minister, Obert
Mpofu, to impose stiff measures against Implats – which is the real reason for
another extension.

In fact, Zimbabwean government officials have not been agreeable to Kasukuwere’s
plan that Zimplats be taken over by the government.

This follows the recent rejection of a portion of Implats’ indigenisation-compliance
plan, culminating in the government issuing an ultimatum that ended on Wednesday
(March 7) for the company to comply or risk strong measures against it.

Mpofu and Kasukuwere were supposed to have met, discussed and agreed to
measures against Zimplats. However, the two could not meet, according to
government sources, as they are not agreeable over what action to take against
Implats.

“Zimplats wrote a letter insisting that they wanted the compliance deadline to be
extended and that they would comply with the law,’ said a corporate executive.

Under the new deal that has been offered by Implats, it will hand over the nearly
30% stake that has been under dispute to the NIEEF, he said. This offer has been
supported by a report from Reuters which said Implats was offering 29.5% of
Zimplats. Implats has since stated that it made no irrevocable offers to the
Zimbabwean government on shares in Zimplats.

“We are not aware of any meeting between the two ministers today. What I know is
that there was a politburo meeting of Zanu-PF,’ said a mining ministry official.

Zimplats CEO, Alex Mhembere would not readily comment, preferring written
questions which had not been answered by the time of writing.

“What can he do against Zimplats? He is just saying rhetoric, which does not have
substance,’ said another corporate executive.