25 Mar 2011 16:06
AQUARIUS PLATINUM LIMITED 25 March 2011 Indigenisation and Economic Empowerment Legislation in Zimbabwe
The Government of Zimbabwe gazetted the Indigenisation and Economic Empowerment Act in 2007. This Act made provision for the indigenisation of up to 51% of all foreign owned businesses operating in Zimbabwe. Regulations in support of the Act were subsequently published in February 2010 in preparation for the implementation of the provisions of the Act.
The Minister of Youth, Indigenisation and Economic Empowerment has today published a statutory instrument in the Zimbabwean Government Gazette, General Notice 114 of 2011 (the "Notice"), setting out the requirements for the implementation of the provisions of the Indigenisation and Economic Empowerment Act and its supporting regulations as they pertain to the mining sector.
The Notice defines the minimum indigenisation and empowerment quota as "a controlling interest or 51% of the shares or interests which in terms of the Act is required to be held by indigenous Zimbabweans in the non-indigenous mining business concerned".
The Notice requires that disposals of the required indigenisation interests must be to defined "designated entities", which include the National Indigenisation and Economic Empowerment Fund, the Zimbabwe Mining Development Corporation or any company incorporated by that entity, a statutory sovereign wealth fund that may yet be created, or an employee share ownership scheme or trust.
The Notice states that "the value of the shares or other interests required to be disposed of to a designated entity ... shall be calculated on a basis of valuation agreed to between the Minister and the non-indigenous mining business concerned, which shall take into account the State's sovereign ownership of the mineral or minerals exploited or proposed to be exploited by the non-indigenous mining business concerned."
The Notice calls for all non-indigenous mining businesses to submit an indigenisation implementation plan to the Minister within forty five days of the date of the Notice, setting out the manner in which such businesses plan to achieve the indigenisation quota. Such plan, once approved by the Minister, must be implemented within six months of the date of the Notice.
To this end, Aquarius confirms that its Zimbabwean operating subsidiary, Mimosa Mining Company (Pvt) Limited, is engaged in discussions with the relevant authorities in order to establish a position that will be compliant with the Act and beneficial to stakeholders. Further information will be made available as and when discussions have been finalised.
For further information please contact:
In the United KingdomGavin Mackay+44 7909 547 042In Australia: In South Africa: Willi Boehm Stuart Murray
Aquarius Platinum Corporate Services +27 (0) 11 656 1140
+61 8 9367 5211
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