Assuring its shareholders that its mining licence was safe from termination, Zimplats has agreed to submit a revised indigenisation proposal by November 2011.

In a press release Zimplats stated:

‘Zimplats confirms that it is in receipt of a letter from the Minister of Youth Development, Indigenisation and Empowerment dated 6 September 2011 in which he advised that the company’s Indigenisation Plan does not meet the minimum requirements of the law and accordingly, he has requested the Minister of Mines and Mining Development to cancel the company’s operating licence.

‘This development follows several meetings between management and the relevant authorities on the Zimplats Indigenisation Plan. The only major area of disagreement is the implementation, in its current form, of the Release of Ground Agreement of 2006. The Government acknowledges the existence and validity of the agreement, but wants to renegotiate certain terms of the agreement.

The Indigenisation law introduced by the Zimbabwean Government requires that all foreign-owned companies with investments over $500 000 should yield a minimum of 51 percent of the shareholdings to black indigenous Zimbabweans.

“Shareholders are advised that the company’s operating licence has not been cancelled and discussions between management and the relevant authorities in this regard are on-going despite the minister’s letter of 6 September 2011. We will continue to inform shareholders of on-going material developments,” said Mhembere.

In his letter to Zimplats Kasukuwere said he had since requested the Mines and Mining Development minister to cancel the company’s operating licence.

“This development follows several meetings between management and the relevant authorities on the Zimplats Indigenisation Plan. The only major area of disagreement is the implementation, in its current form, of the Release of Ground Agreement of 2006,” said Mhembere.

“The government acknowledges the existence and validity of the agreement, but wants to renegotiate certain terms of the agreement.”

This entry was posted on Tuesday, September 13th, 2011 at 11:29 am.