Impala Platinum Holdings Ltd (IMP) is expecting, or rather hoping, the Zimbabwe government to back down on its demand that the business or company be controlled by black citizens of Zimbabwe, in which case it is willing to invest 10 billion dollars to expand production there.

Zimbabwe earlier this year put into law that foreign companies must pass 51 percent of the coltrolling interest to Black Zimbabweans. This would apply to . Anglo American Platinum Ltd., the world???s largest platinum producer, and Aquarius Platinum Ltd. (AQP) who also mine there.

“It would run into the billions of dollars, probably between $5 and $10 billion,” Chief Executive Officer David Brown said in an interview in Johannesburg yesterday, where the company is based. “Fifty-one percent equity just does not work.”

“It’s a very big risk for Zimplats and by extension Impala,” Piet Viljoen, chairman of RE:CM, which manages about 18 billion rand ($2.5 billion) of assets, said in an interview from Cape Town. “If the government takes up to 50 percent of the company for no consideration it’s like giving away 50 percent of a valuable asset. It’s entirely possible.”

“We could begin to look at phase three and beyond but this requires stability,” Brown told investors at a presentation. Impala has until Aug. 31 to revise a May proposal to satisfy ownership rules after it was rejected last week.

This entry was posted on Saturday, August 27th, 2011 at 10:06 am.