Saviour Kasukuwere, Zimbabwe’s firebrand minister of youth development, indigenisation and empowerment, has “suspended” the cancellation of Blanket Mine’s operating licence, pending further revision of the company’s empowerment proposals.
The Mail & Guardian reported last week that Kasukuwere had withdrawn the goldminer’s licence after rejecting its plan to hand a 51% stake to indigenous Zimbabweans as “unacceptable”. Now the Caledonia Mining Corporation, owner of the Blanket Mine in Gwanda, has reached an agreement with the Zimbabwe government to submit a new empowerment plan.
But the company must forward its proposal before the expiry of the 14-day ultimatum issued by Kasukuwere to a host of other foreign-owned mining companies, including Zimplats, Anglo Platinum, British America Tobacco, Standard Chartered and Barclays banks.
In a statement Caledonia said it had “agreed on a process that would result in the production of a revised indigenisation implementation plan for Blanket Mine that is compliant with the Indigenisation and Economic Empowerment Act”.
“The plan will take into account the independently verified intrinsic value of the mineral resources, plant and equipment at the mine,” it said.
Zimbabwe’s controversial empowerment laws have sparked fresh fears that the recovery of the mining sector could be stifled by the mine grabs. Although mining has continued uninterrupted at Blanket Mine the threat to force its closure has become a sore point in the Matabeleland region, with local political leaders questioning the practicality of cancelling its operating licence at a time when the region is battling with a massive loss of industry and jobs.
The industry and trade ministry have revealed that, since 2010, at least 87 Bulawayo-based companies have either shut down or relocated to Harare, with nearly 20 000 workers affected.