Minister Orders Cancellation Of Zimplats Licence

The move is set to frighten foreign investors interested in Zimbabwe as a destination.

Kasukuwere said he had given Zimplats time to come up with proposals on how it would adhere with the law but the platinum miner was shifting goal posts.

“Zimplats continue to defy the laws of this land and continue to abuse the process. We have tried to engage them in a manner that achieves a win-win situation but it appears that as government we have reached the end of the road,” Kasukuwere said.

“We have already written to the ministry of Mines.”

He said the ministry had taken such action to make sure that the laws of the land are enforced.

Kasukuwere said the ministry had tried to negotiate with Zimplats but the platinum miner was not forthcoming.

“We have done everything in our power to negotiate with Zimplats but they continue to find loopholes.”

Kasukuwere said it’s unfortunate that government is taking such action but it had to proceed since its negotiations with Zimplats was “dialogue of the deaf”.

According to an extraordinary Government Gazette published in March, a controlling interest or 51% of any foreign owned mining company with a net asset value of at least US$1 is required to be held by either the National Indigenisation and Economic Empowerment Board (NIEEB), or the Zimbabwe Mining Development Corporation (ZMDC); or any company or other entity incorporated by the ZMDC or NIEEB; or a statutory sovereign wealth fund that may be created by law.

It can also be transferred to an employee share ownership scheme or trust, management share ownership scheme or trust or community share ownership scheme or trust.

Mining companies had up to May 9 to submit its proposals.