Zimplats appeals land repossession
28/03/2013 00:00:00
by Staff Reporter
PLATINUM miner, Zimplats, has lodged an appeal against the government’s
proposed compulsory acquisition of about 50 percent of its mineral resource
which was confirmed by Mines Minister Obert Mpofu last month.
In a statement Thursday Zimplats chief executive, Alex Mhembere, said:
“Further to the announcement regarding the proposed compulsory acquisition
of land, Zimplats confirms that (it) lodged an objection on 27 March to the
preliminary notice … with regard to the President’s intention to acquire
compulsorily 27,948 hectares of land held by Zimplats”,
Zimplats – listed in Australia and majority-owned by South Africa-based
Impala Platinum (Implats) – holds a special mining lease over two areas in
the country totalling 48,535ha in extent.
But in February Mpofu said the government had “repossessed” 27,948ha of the
land “with immediate effect” without compensation adding the mineral
resource would be offered to other investors.
“Zimbabwe has not realised significant value from the platinum sector beyond
the traditional statutory payments. We can no longer continue having our
minerals refined outside the country,” said Mpofu.
“You can only compensate for land that has been bought. The ground belongs
to Zimbabwe and there cannot be talks of compensation when the land belongs
to you.”
The company was given 30 days to appeal the move and management immediately
indicated they would challenge the development.
“Implats and Zimplats are taking legal advice in order to protect their
rights and, in addition, remain in consultation with the relevant government
authorities,” the company said at the time.
The land seizure adds to the uncertainty clouding Zimplats’s operations in
teh country following allegations of possible irregularities in the company’s
indigenisation compliance programme.
Implats signed a conditional, non-binding term sheet for the transfer of 20%
of Zimplats to employee and community trusts and 31% to a state-run National
Indigenisation and Economic Empowerment Fund.
The deal is expected to see the company comply with laws requiring foreign
companies to transfer at least 51 percent of their Zimbabwe operations to
locals but sharp differences have emerged in government over the transaction
amid allegations of possible irregularities.
Implats, which is implementing a US$450 million expansion programme at
Zimplats, however says it is committed to the country despite the
uncertainty.
Zimplats is the biggest mining investor in Zimbabwe with management saying
the company employs nearly 10,000 people in the Mhondoro-Ngezi area, where
its operations are situated.
Zimbabwe’s platinum output puts it in third place, behind world leader South
Africa, and second-place Russia.