Zimbabwe central banker stockpiles gold to bolster ZiG currency
The ZiG - short for Zimbabwe gold — is the nation’s sixth attempt at having a functioning local currency in the last 15 years.
South Africa’s Impala Platinum Holdings (Implats), the world’s second-largest platinum producer by volume, has agreed to transfer 51% of Zimplats, its subsidiary in Zimbabwe, after long-drawn-out negotiations with the government of that country.
The deal, the first large agreement reached between a mining company and Zimbabwe’s government after it introduced an indigenization law in early 2010, is already generating passionate arguments.
The Herald newspaper, a state-controlled media outlet used to broadcast government announcements, called Impala “naive and irresponsible” to assume it could expand its operations in the nation based on what Zimbabwe said was a “flawed” agreement.
The enforcement of the indigenization law, which calls on international mining companies to transfer 51% stakes to local investors or risk losing permits, must be seen within the context of “Zimplats’ flawed agreement and special mining lease with the government, which should rightly be feeling cheated either by omission or commission,” says the article in today’s Herald.
In the media release Impala said the new Zimplats indigenization implementation plan presented to the minister had met the “minimum requirements” of the indigenization and Economic Empowerment Act and the 2010 regulations, adding that those minimum requisites were “acceptable in principle” to the Zimbabwe government.
“The implementation will be at appropriate value and the details for the transfer of the 51% shareholding in Zimplats will be addressed by a joint technical team, comprising Implats, the Ministry responsible for indigenisation and the NIEEB,” Implats added.
While details of the transfer are still in the works, analysts believe that the deal is likely to increase pressure on other mining companies to reach similar agreements.
Comments
David Jones
another FOOT SHOOT!!