David Brown, CEO Impala Platinum, heavily criticised the Zimbabwe Government last Thursday for trying to force foreign miners to transfer over half of their assets to black investors. He stated that a drive by the Zimbabwean government to force foreign miners to transfer 51% of their local equity stakes to black investors in the country could not work and was hurting the country.

“We believe that 51% equity just does not work,” David Brown said. “What they are doing is very bad for the country . . . and has the potential to retard investment,” he continued in comments that were unusually blunt for a company official on the issue. He also said the company wanted to see the law changed. The group recently unveiled full- year results showing earnings per share had soared over 40 on higher platinum higher prices.

The company holds an 87% stake in Zimbabwe Platinum Mines Limited (Zimplats) and is also in a 50-50 joint venture in Mimmosa. The company has invested over 700 million US dollars in Zimplats as well as 97 million US dollars going to staff employment costs. The Zimbabwe Government has received 190 million in taxes.

“Zimbabwe???s economic future remains very much linked to a speedy resolution of the political challenges facing the country.”

“Political uncertainty together with the unresolved indigenisation and economic empowerment policies, have resulted in many potential investors adopting a wait-and- see attitude with regards to investment in the country,” Brown said.

“Zimplats remains committed to implementing its Ngezi Phase II Expansion project on the basis that the government will honour its commitments as enshrined in the agreements signed in 2006 and earlier.”

Brown stated that the group’s platinum output for the 2012 financial year would likely decline to 1,7 million ounces from just over 1,83 million in the past year as old infrastructure becomes less productive.

This entry was posted on Monday, August 29th, 2011 at 2:22 pm.