The new minimum requirements, under the Indigenisation and Economic Empowerment Act, stipulate that each non-indigenous mining company must submit an “indigenisation plan” within 45 days, and dispose of 51% of its shares to a “designated entity” within six months, which can be extended by a period of no more than three months in certain circumstances.
According to New Dawn, the announcement defines a “designated entity” as a state-owned or controlled company, or an employee share ownership scheme.
The value of the shares that will be transferred will be calculated based on a valuation agreed by the Zimbabwe ministry and the said non-indigenous mining company.
The Indigenisation and Economic Empowerment Act was signed into law in March 2008, and originally stated that non-indigenous companies operating in Zimbabwe must arrange for 51% of their shares or interests to be owned by indigenous Zimbabweans within five years.
Each of New Dawn’s Zimbabwe operating subsidiaries, namely Casmyn Mining Zimbabwe, Falcon Gold Zimbabwe, and Olympus Mines, is a non-indigenous company.
“New Dawn is reviewing these new regulations in order to understand their potential impact on the company’s Zimbabwe-focused mining operations and business plans, and will report to shareholders as more information becomes available,” the company said in a statment on Monday.
The junior gold producer’s main assets are the Turk and Angelus Mines in Zimbabwe, as well as a portfolio of exploration properties in the region.