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Harare - Zimbabwe has turned down a request by Impala
Platinum Holdings [JSE:IMP], the world's second-biggest producer, to extend a
deadline to hand over a 29.5% stake in its Zimplats unit to a state-run fund,
according to a letter seen by Reuters on Wednesday.
Harare is expected to announce the fate of Implats'
shareholding in Zimplats later on Wednesday after the two sides failed to agree
on demands for the miner to surrender the stake, which is worth $310m at
current prices.
Zimbabwe’s youth and empowerment ministry, which is leading
a push for local blacks to take majority stakes in foreign firms, told Zimplats
bosses in a March 2 letter that today’s deadline would not slip.
"You are advised that your request for a 30-day extension
has been rejected by the honourable minister and your company is expected to
comply with the law as stated in our February 22 letter," the document said.
The two sides met on Friday and Monday but failed to break
the deadlock, a government official said.
Although the two-week ultimatum falls due on Wednesday, it
is not clear what Harare will do if Zimplats fails to comply. Under empowerment laws, it could cancel Zimplats’ mining
licence or arrest its executives.
Zimplats has already handed over 10% of its shares to “local
communities”, and has offered to transfer a further 5 percent to a staff trust
fund and 6.5% to a sovereign wealth fund.
Implats chief executive David Brown said last week the company would not quit Zimbabwe, home to the second-largest platinum deposits after South Africa.
