[miningmx.com] — ZIMBABWE mines minister, Obert Mpofu, has refused to endorse empowerment minister Saviour Kasukuwere’s assertions that Impala Platinum – which owns 87% of Zimplats – could lose its platinum mining license for “failing” to comply with a controversial policy compelling foreign companies to cede majority shareholding stakes.
Business Live/I-Net Bridge this week reported that Kasukuwere was powerless and that he would have to seek authority from the central bank to cancel foreign banks’ licenses for failure to comply with the indigenisation law, according to an official in his ministry.
It now also appears that Kasukuwere, who said yesterday that his ministry would engage the mines ministry to institute proceedings to cancel Implats’ license for Zimplats, would have to get endorsement for this from Mpofu. President Robert Mugabe said on Tuesday foreign investments in the country were safe.
Kasukuwere said the government had run out of patience with Zimplats over its failure to comply with the problematic law. Zimplats is the biggest platinum group metals miner in the country.
Mpofu seemed unaware of Kasukuwere’s sentiments when he was asked for comment about the government’s move to cancel Zimplats’ license. “Did they tell you that (Zimplats would lose its license) and who said that,” said Mpofu.
He referred further questions and enquiries about the issue back to Kasukuwere, saying “the ministry of mines” could not be involved in issues outside its portfolio. Kasukuwere was however not immediately reachable for comment.
“Deal with Kasukuwere on that issue, my business is not to assess other people’s statements or portfolios; I only deal with my portfolio,” said minister Mpofu.
This is likely to throw cold water on Kasukuwere’s high sounding threats, which apparently, he has previously made against other large foreign groups with operations in the country. His explosive statement, which was carried in the state run daily, the Herald, come on the back of a statement early this week by Implats which said Zimplats was still negotiating with the government.
Mugabe yesterday appeared to have backed off from his usual attacks on foreign firms, possibly signaling a shift in the government’s previous non-accommodative and resolute stance on the issue after he said: “The government looks forward to full co-operation by all stakeholders to achieve win-win benefits. Investments in the country remain safe, but we would like to urge foreign companies to comply with the country’s laws.”
Finance Minister, Tendai Biti also cautioned against Kasukuwere’s “confrontational approach” and revealed that his ministry was helping banks negotiate for lower mandatory thresholds that should be ceded under the indigenisation law.
In his statement however, Kasukuwere said Zimplats “… continues to defy the laws of Zimbabwe” and “… continues to abuse the process”. He said his ministry had in “many instances tried to engage (Zimplats) in a manner that achieves our objectives of a win-win situation” but to no avail, hence the decision to cancel the giant platinum miner’s license.
“We have tried to negotiate. They come forward and take six steps back and therefore we have taken the position to deem them non-compliant in terms of provisions of the Indigenisation Act,” stated Kasukuwere.
Although the law is being spearheaded by the Zanu PF side of Zimbabwe’s coalition government, some government officials – including some with links to President Robert Mugabe’s Zanu PF party – are said to be opposed to Kasukuwere’s “confrontational approach” to enforcing compliance with the law.
Zimbabwean economists have already warned of the dire consequences to the economy and investment prospects should the government forge ahead with the law.
