[miningmx.com] — ZIMBABWE Empowerment Minister, Saviour
Kasukuwere has confirmed that the government is developing amendments to the
controversial indigenisation policy so that foreign miners will no longer receive
compensation for majority shares ceded to black Zimbabwean groups.
This came in response to criticism levelled against Kasukuwere by President Robert
Mugabe, who last month said the minister had made mistakes by agreeing to a deal
that would see Zimplats give away 51% shares in return for monetary compensation.
“The problem is that Zimplats gave us 51% shareholding saying they were loaning us
the money (for the acquisition of the shares) and then we would have to pay back.
That is where our differences are,’ Mugabe said in a state televised interview on
March 1.
Implats CEO, Terrence Goodlace said in January that the indigenisation deal signed
with Zimbabwe restored certainty for the company whose Zimplats unit is the biggest
mining company in Zimbabwe.
There are fears and concerns now that the amendment to the empowerment law will
be a “step in the wrong direction’ as it throws the miners back to the drawing board.
“We can’t pay for our resources. They have to factor in the minerals when they do
their valuation for compensation,” said Kasukuwere in an interview.
Kasukuwere said compensation, as mandated under the new amendment to the
empowerment policy, would be factored in through the resources that the foreign
mining firms are mining in Zimbabwe.
Ted Muzoroza, a Zimbabwe mining law expert, told Miningmx the
Indigenisation and Economic Empowerment Act did not provide for expropriation of
property, mining assets included.
He said, however, that amendments to the legislation can be done consistent with
the constitution, particularly the section dealing with the compulsory acquisition by
the state of shares or interests in businesses.
Other experts said amending the legislation would be problematic and further raise
the uncertainty of Zimbabwe’s regulatory and operating framework.
“The motivation for this position arises out of the desire to ensure that the people of
Zimbabwe benefit fully, and without cost whatsoever, from enterprises that exploit
their God-given natural resources,” the draft amendment reads.
The amendment will affect Impala Platinum, Anglo American Platinum, Aquarius
Platinum and other foreign mining companies in Zimbabwe. This is despite the earlier
deals which were struck for Unki, Zimplats and Mimosa mines.
Officials at Unki and Mimosa were not available for comment but Zimplats CEO, Alex
Mhembere, said in a statement on Monday the group was still studying the
implications of the possible amendment to the law.
