Loading...
See More

Harare claims 51% ownership of all mines

Apr 05 2012 10:17 Reuters

Company Data

IMPALA PLATINUM HOLDINGS LIMITED [JSE:IMP]

Last traded 0
Change -1,32
% Change 0
Cumulative volume 1290900
Market cap 48.36bn

Last Updated: 19-12-2014 at 04:40. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Analysts slam Zim mining policy

Zim yet to conclude Zimplats terms

Implats surrender boosts Zanu-PF for poll

Revenue crunch may shut Zimbabwe govt

Implats gives up 51% Zimplats stake

Harare reviews mine fees after uproar

 
Harare - Zimabwe’s government raised the stakes on Thursday in its drive to wrest majority control of foreign mining companies, with a minister saying the state now considered it owned 51% of firms that have not complied with local ownership laws.

“All mining companies that have not complied... should note that 51% of their shareholding is now deemed to be owned by the state,” Empowerment Minister Saviour Kasukuwere said.

It was not immediately clear which firms were being targeted, or whether President Robert Mugabe’s cash-strapped government planned to pay for the shares. Kasukuwere did not respond to requests for clarification.

The demand for foreign companies, particularly miners, to transfer a 51% stake in local operations to black investors is widely seen as a tactic by Mugabe’s Zanu-PF party to raise cash for elections that may come this year.

Johannesburg-listed Impala Platinum Holding [JSE:IMP] the world’s second-biggest platinum producer, bowed to pressure last month to surrender half its Zimplats unit, although details of the transfer have not yet been worked out.

Analysts said this latest broadside from Kasukuwere might be more bluster than fact.

“I would treat this with quite a degree of scepticism,” said Nic Borain, an independent political analyst based in Cape Town.

“I would want to wait to see the specifics of how those shares would be transferred, how the assets would come to be in government hands, how government would exercise any control over those assets.”

The statement added that any profits accruing to the 51% stakes “should be regarded as property of the state”, and that other companies transacting with mining firms should remember that they are dealing with the government.

“Any attempt to defraud the state will result in prosecution,” it said.

Kasukuwere has previously said most major firms have complied or are in the process of complying, but he has not publicly endorsed plans relating to leading gold producer Metallon Gold, an unlisted South African miner, and Mwana Africa’s Bindura Nickel corporation.

Harare says its “indigenisation” policy is needed to redress the racial inequities of past colonial rule, but similar drives in other sectors have been disasters, most notably the government’s seizure of white-owned farmland that decimated commercial agriculture and led to widespread food shortages.


NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...