Zimplats Not Aware Of Indigenous Plan Rejection

“The minister has not yet officially told us about this. We only read it in the newspapers,” Mhembere said in Harare.

“We are, however, continuing to work very closely with government on all issues including the indigenisation one.”

Kasukuwere in the Media boasted that all of the 173 plans sent to his ministry had been “rejected” because they did not meet the required “levels and standards required by government”.

Under the new Indigenisation Act, Zimbabweans are required to own at least 51 percent of all companies operating in the country with a US$1m turnover.

Mhembere said Zimplats Holdings Limited had done very well for the Quarter ending June 30, 2011 judging from its impressive results.

This comes despite the fact that Zimbabwe’s once vibrant mining industry has been sneezing due to lack of investment as well as the fact that most mines were closed during the period of hyperinflation.

The local mining industry has said the new Indigenisation Act slapped on them by government “is grossly unfair and stifling major investment”.

They have also said the Act is chasing away potential investment coming at a time when the country seriously needs massive cash injection.

The mining industry has said it needs at least US$5 billion to get back on track having been docile about two years ago.

Mhembere said for the Quarter ended June 30, 2011 local indigenisation procurement at Zimplats shot up by 33 percent year-on-year.

He said contributions to the fiscus were up by 32 percent to US$13,2 million, while metal production had sky-rocketed by 24 percent.

Operating profit, on the other hand, went up by 6 percent at Zimplats, which is among Zimbabwe’s major mining houses.

Mhembere said Zimplats could soon list on the Zimbabwe Stock Exchange (ZSE) because they “have confidence in Zimbabwe”.

He said platinum production had gone up to 51 570 tonnes by June 30, from 41 526 tonnes mined in December, last year.

Palladium was up to 41 564 tonnes from 33 802 tonnes, a 23 percent increase, while gold production had shot up by 24 percent from 4 818 tonnes to 5 957 tonnes.

Mhembere said rhodium production had gone up by 24 percent from 3 861 tonnes to 4 784 tonnes, iridium also up by 26 percent from 1 544 tonnes to 1 953 tonnes, and silver up by 22 percent from 7 597 tonnes to 9 335 tonnes during this period.

Mhembere said nickel production had increased by 23 percent from 810 tonnes to 998 tonnes, copper up by 24 percent from 593 tonnes to 735 tonnes, while cobalt had increased by 35 percent from 11 tonnes to 15 tonnes during the Quarter ended June 30, 2011.

He said the company had done a lot for the community including its new project to build a school in the Ngezi/Selous area.