Honour 2006 plan, Zimplats urges govt By Chris Goko, Business Editor Thursday, 28 April 2011 17:42
HARARE - The Zimbabwe Platinum Mines (Zimplats) is pressing government to honour a 2006 empowerment plan under which Harare would discount higher equity in the platinum miner for a 10 percent offer and 86 claims.
This also comes as a local investment group Nkululeko-Rusununguko Mining Company of Zimbabwe (NRMCZ) ? fronted by Alex Manungo ?? is reportedly back in the running for a 15 percent stake in the South African-owned mining group.
Although company spokesperson Busie Chindove was not readily available for comment, Empowerment Minister Saviour Kasukuwere yesterday said he was unaware of alternative plans to indigenise Zimplats and the recent publication of the 51 percent mining-ownership regime meant the new order superseded any prior arrangements.
?As far as l know (and understand), Zimbabweans will own 51 percent of any mine operating in the country,? he said.
Following March 25?s promulgation of the localisation thresholds, foreign miners have been under renewed pressure to handover majority shares in their companies or businesses to black Zimbabweans.
Despite a plea for reduced direct equities on account of significant civil infrastructure investments, initial public offerings and local procurement initiatives, it is understood that Zimbabwe?s small band of heavyweight miners have been under such pressure that they were ?hurtling to court potential partners?.
Founded in 1998, the US$2 billion company gained key platinum group metals (PGMs) assets in the country after taking over the assets of Broken Hill Proprietary in May 1999.
Zimplats , which is 87 percent?owned by SA?s Impala Platinum, produces 180 000 ounces of PGMs a year from its northern Dyke operations or site of Hartley and Ngezi mine.
In the meantime, NRMCZ?s name has not only popped at the envisioned scramble for suitable partners by foreign-owned mines, but also at the back of Kasukuwere?s statements in January that government was in talks with the white metals producer over the empowerment stake.
Initially named as the winner or consortium to buy the coveted stake in July 2004, Manungo?s empowerment grouping announced five years ago that it had lined up an array of potential funders ? about eight of them ? to fulfill its takeover of the 15 percent stake in Australian Stock Exchange-listed Zimplats.
The consortium, which includes bankers and an array of businessmen, said then that financiers were from China, Germany, Russia, South Africa and the United Kingdom.
With the company?s market capitalisation at 1,3 billion Australian dollars as at Wednesday, observers said Zimplats has always been willing to do business with any Zimbabwean party since commencing operations and NRMCZ?s promoters had reactivated its contacts in anticipation of a re-engagement process.
While the Zimbabwean government and cabinet had okayed the NRMCZ transaction, it fell through at the hands of some powerful bureaucrats in President Robert Mugabe?s financial-management system and a few issues that needed ironing out at the time.
The company holds 165 million ounces of platinum resources at its greenstone and upper Zimbabwe concession, which assets also position the country as a key player in PGM supplies for industrial uses, including glass production, auto-catalysts and electrical productions.
In Zimbabwe, the company competes with a range of producers, including world number one producer Anglo Platinum and Aquarius, owners of Mimosa mine.
ZIM Price at posting:
$12.00 Sentiment: LT Buy Disclosure: Not Held
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