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Harare - Zimplats, the Zimbabwe unit of Impala Platinum Holdings [JSE:IMP], said on Tuesday it is in talks with the government after authorities rejected its black empowerment plan.
Zimbabwe’s government last week gave several foreign-owned banks and mines, including Zimplats, two weeks to submit new proposals on how they would transfer majority shares to local blacks or risk losing permits.
South Africa-based Impala, the world’s second-largest platinum producer, owns 87% of Zimplats. Zimbabwe’s Indigenisation and Economic Empowerment Minister Saviour Kasukuwere wrote to the company on August 17, rejecting its empowerment proposals and directing it to offer a revised plan within 14 days, Zimplats said in a statement.
“Discussions between management and the relevant authorities in this regard are ongoing,” the company said.
Zimbabwe has the world’s second-largest known platinum reserves after neighbouring South Africa, and market watchers and investors are therefore keen to see how the drama unfolds against the backdrop of red-hot commodity prices.
Critics say the empowerment law, which was enacted in 2008 and seeks to transfer at least 51% shares in all foreign-owned firms to local blacks, threatens the country’s fragile economic recovery from a decade of contraction.
A unity government set up by President Robert Mugabe and his rival Prime Minister Morgan Tsvangirai two years ago following disputed elections in 2008 is sharply divided over the law.
Central bank governor Gideon Gono, a Mugabe ally, has also sharply rebuked Kasukuwere, also from the president’s party, saying he was “recklessly creating panic in the financial sector” after he targeted foreign-owned banks.
Apart from Zimplats, other foreign firms given the 14-day ultimatum include Aquarius Platinum, Rio Tinto’s diamond mine Murowa, British American Tobacco and local units of British banks Standard Chartered and Barclays.
On Monday, state media reports said the government had also directed the Standard Bank’s Zimbabwe unit to make available up to 40% of its shareholding to locals.
Zimbabwe’s government last week gave several foreign-owned banks and mines, including Zimplats, two weeks to submit new proposals on how they would transfer majority shares to local blacks or risk losing permits.
South Africa-based Impala, the world’s second-largest platinum producer, owns 87% of Zimplats. Zimbabwe’s Indigenisation and Economic Empowerment Minister Saviour Kasukuwere wrote to the company on August 17, rejecting its empowerment proposals and directing it to offer a revised plan within 14 days, Zimplats said in a statement.
“Discussions between management and the relevant authorities in this regard are ongoing,” the company said.
Zimbabwe has the world’s second-largest known platinum reserves after neighbouring South Africa, and market watchers and investors are therefore keen to see how the drama unfolds against the backdrop of red-hot commodity prices.
Critics say the empowerment law, which was enacted in 2008 and seeks to transfer at least 51% shares in all foreign-owned firms to local blacks, threatens the country’s fragile economic recovery from a decade of contraction.
A unity government set up by President Robert Mugabe and his rival Prime Minister Morgan Tsvangirai two years ago following disputed elections in 2008 is sharply divided over the law.
Central bank governor Gideon Gono, a Mugabe ally, has also sharply rebuked Kasukuwere, also from the president’s party, saying he was “recklessly creating panic in the financial sector” after he targeted foreign-owned banks.
Apart from Zimplats, other foreign firms given the 14-day ultimatum include Aquarius Platinum, Rio Tinto’s diamond mine Murowa, British American Tobacco and local units of British banks Standard Chartered and Barclays.
On Monday, state media reports said the government had also directed the Standard Bank’s Zimbabwe unit to make available up to 40% of its shareholding to locals.
