Staff Reporter
THE world’s two biggest platinum mining groups have moved closer to fulfilling their empowerment quotas, which government is planning to enforce through an indigenisation law widely condemned as hostile to foreign investors.
The world’s largest platinum miner, Anglo Platinum (Angloplats) said it had entered into an agreement in March 2008, with the Zimbabwe government in terms of which it gave up 31,3 percent of the platinum group metals (PGM) mining claims to the government in return for empowerment credits.
The agreement became effective last year.
Angloplats owns the Unki project situated near Gweru, on Zimbabwe’s Great Dyke.
Unki is planned as a 120,000 tonne per month operation, and both the mine and the concentrator have the potential to be further expanded.
The world’s largest platinum producer, Impala Platinum, says it also gave up some of its mining ground held by subsidiary, Zimbabwe Platinum (Zimplats) to the government in 2006.
These are likely to be credited towards its empowerment requirements.
Zimplats have given up to 36 percent of its 140,8 million ounces mineral resources to the government for which Zimplats was to receive an empowerment and cash credit of US$153 million, calculated to be equivalent to 30 percent empowerment.
Implats chief executive officer, David Brown,said: “We believe the indigenisation equity requirements for Zimplats should be in the 15 percent to 26 percent range when the various offsets already earned by Zimplats are taken into account.”
“These offsets include the surrender of mining ground, and investments made by Zimplats in infrastructure and social developments.”
Implats also jointly owns Mimosa Platinum mine together with Aquarius Platinum.
Aquarius Platinum has said it is still considering its response to the empowerment law that will force companies to transfer at least 51 percent controlling interest in their companies to Zimbabweans within the next five years.
The Indigenisation and Economic Empowerment Act was passed by Parliament towards the end of 2007, and gazetted on March 7 2008. It was signed into law on April 17 2008. The law provides for all foreign-owned companies operating in Zimbabwe to cede at least 51 percent of their shares or interests to indigenous Zimbabweans.
The government published the latest regulations on January 29, 2010, with respect to the principal Act advising foreign-owned companies to provide specified information to the Minister of Youth Development, Indigenisation and Empowerment, including an indigenisation implementation plan, by April 15, 2010.
That information, together with responses from all sectors of the Zimbabwe economy, will be used as a basis for determining what amount less than 51 percent shall apply to any sector or subsector and the maximum period for achieving indigenisation.
The weighting that may be given for socially and economically desirable activities may be taken into account for a business to be said to be compliant without necessarily indigenising 51 percent or the lesser prescribed percentage for any sector or subsector.
The latest set of regulations requires the Indigenisation Minister, Saviour Kasukuwere, to complete the determinations by February 28, 2011. David Monyae, a South African-based political analyst, told Al Jazeera that the law itself was not controversial, but that “the key issue is how you go about doing it”.
“The entire concept of ‘indigenisation’ is nothing new or unique to Zimbabwe. Here in South Africa we have BEE — [Black] Economic Empowerment — and in other areas in western Africa and the like you have what you call ‘localisation’,” he said.
“I think it’s aimed at spreading the wealth, to ensure that wealth creation in Zimbabwe is shared by a much wider base.
“But ... the policy has to be written in consultation with all stakeholders in Zimbabwe, and ensure that it advances the economic growth of the country before [the] rush for redistribution.”
Other analysts warn that the law will probably damage Zimbabwe's already ailing economy and jeopardise foreign investment.
“No potential investor is willing to be reduced to minority ownership, despite providing the majority of the capital, state of the art technology and ready access to their markets,” Eric Bloch, an economic commentator, was quoted by Reuters as saying.
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