Since the Youth Development, Indigenisation and Economic Empowerment ministry gazetted General Notice 114 of 2011 in March last year, it had received more than 200 indigenisation implementation plans from mining businesses.
The initial deadline was September 25 last year. However, this deadline was repeatedly extended until Indigenisation minister Saviour Kasukuwere read the riot act to mining companies in February this year.
“In essence every legal mining company has submitted their proposals and for those that have not submitted it was because their plans had been rejected to allow them to make amendments,” Chapfika said this week. He however said compliance was a process, which would be implemented over a five year window once approval had been obtained from the minister.
Last month, Kasukuwere said his ministry hoped to have finalised the transfer of majority stakes in foreign mining companies to locals by the end of April.
Prior to his announcement, the few notables that had not yet had their empowerment plans approved were Duration Gold and Metallon.
“I would say in the main there has now been compliance and now it’s just a question of dotting the Is and crossing the Ts,” he said at a Reuters office in Johannesburg.
In its quarterly update released early this week, Zimplats said discussions were still on-going regarding finalisation of an implementation plan.
The Australian-listed mining house had agreed in principle to cede 51% of its shareholding to government
Under the proposal, 10% of Zimplats’ shareholding would be held by the local community trust, 10% by the employees and 31% by the NIEEF. The finer details are to be addressed by a joint technical team comprising Zimplats, the Indigenisation ministry and the NIEEF Board. The NIEEF is a Sovereign Wealth Fund managed by the NIEEB, assisted by financial advisors.
Mimosa Platinum mine also announced last month that it was willing to comply with the 51% local ownership requirement and discussions were now focused on agreeing shareholder structure, valuation and funding of the share transactions.
Early this year, Caledonia Mining signed an MoU with the Indigenisation ministry after agreeing to sell 51% of its Blanket Mine to indigenous Zimbabweans.
The stake is to be transacted at US$30,09 mln and each beneficiary of the indigenisation exercise will not hold more than 16% equity.
Under the agreement, 16% will be sold to the National Indigenisation and Economic Empowerment Fund, 10% will be taken up by management and employees and 10% will be donated to the Blanket Gwanda community Trust.
In addition, the group will donate US$1 mln to the Trust after it has been set up. The 15% remainder will be sold to private investors who were identified on the basis of their being able to add value to operations.
The group is hopeful the transactions envisaged in the MoU will be implemented during the second quarter of 2012. –– Staff Writer.