[miningmx.com] — ZIMPLATS fears its ability to raise loan finance would
be jeopardised should it be forced to localise all its offshore accounts to Zimbabwe.
This came after the Reserve Bank of Zimbabwe (RBZ) prohibited the local platinum
miner’s local bankers to facilitate the group’s international transactions. The directive
was issued due to Zimplats’ failure to comply to an order, issued in February, which
compelled the country’s miners to close their offshore accounts and transfer those
funds to local bank accounts.
In a statement issued on Monday, Zimplats said it was already paying 75% of its
total spend through the Zimbabwean banking system, with the balance relating
mainly to the servicing of offshore loans which were raised with the approval of the
RBZ.
Zimplats has two loan facilities from South Africa’s Standard Bank, principally
negotiated for financing the Ngezi Phase 1 and 2 expansion projects. According to the
group’s interim statements to end-December 2011 issued in February, a final
instalment for the payment of a $80m loan was due in April.
The second loan is a revolving credit facility for $88m with a maturity date of
December 2014. The amount drawn down at the half year was $50m.
Zimplats’ Chief Financial Officer Patrick Maseva-Shayawabaya told Miningmx
the RBZ directive posed no immediate obstacle to the group’s ability to operate at full
capacity. However, the group’s loans were issued on the conditionality that some
funds were repatriated directly to related foreign accounts.
“We hope that in our discussions with the RBZ they’ll give due consideration to the
fact that those loans were secured on this basis,’ Maseva-Shayawabaya said.
He said he was confident Zimplats could resolve the issue within a week.
Meanwhile, Mimosa mine – co-owned by Zimplats parent Impala Platinum and
Aquarius Platinum – said it had complied in full with the directive to localise the funds
it held in foreign accounts.
“The localisation of funds in Zimbabwe has to date not had an impact on Mimosa’s
ability to conduct its business,’ read an Aquarius statement.
