More than 50 foreign-owned mining firms risk losing their licences after failing to submit acceptable indigenisation and empowerment plans as directed by government, the Zimbabwe Herald newspaper reported on Thursday.
According to Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, these firms also risked prosecution.
Already, the minister has indicated that his department had started the process of cancelling the operating licence for Zimplats after the company failed to comply with the law, the newspaper said.
“Up to 45 mining companies have either had their plans approved or have agreed on an implementation framework and will generate revised plans to achieve a 51% indigenous threshold,” the newspaper quoted Kasukuwere as saying.
“Companies that did not respond or have not complied with the indigenisation and economic empowerment legislation will be prosecuted or have their business operating licences cancelled.”
In terms of the Indigenisation and Empowerment Act enacted in 2008, foreign-owned firms have been forced to cede for value at least 51% equity to locals.
“Leading the band of delinquent foreign-owned mining firms is the country’s largest platinum miner Zimplats, which might be first to lose its licence,” the Herald added.
“The firm wanted government to recognise its claim that it had localised 30% of its equity after releasing a block of mineral reserves it says were worth $150-million. The state said it would rather pay for the reserves than award credits.”
The Herald added that although Zimplats maintained that discussions with government were continuing, Minister Kasukuwere on Tuesday had disclosed that discussions had reached a dead end. — I-Net Bridge