The country’s biggest platinum producer, Zimbabwe Platinum Holdings (Zimplats) says the Indigenisation and Economic Empowerment Act (Chapter 14:33) is yet to be amended to give weight to Government pronouncements to remove platinum miners from the reserve list.
Zimplats, in its 2019 Integrated Report said it was still in engagement with Government over the matter.
“Following the amendments made by the Finance Act, 2018, the Government made a number of public pronouncements that reflected new thinking, indicating the Government’s intention to repeal the 51 percent indigenous equity requirement for the diamond and platinum mining sectors.
“On August 1, 2019, the Minister of Finance and Economic Development presented the 2019 Mid-Year Budget Review and Supplementary Budget to the Parliament of Zimbabwe.
“The minister announced that platinum and diamond miners would now be removed from the reserve list and essentially that the 51 percent/49 percent shareholding structure would therefore no longer be required for platinum miners,” said Zimplats.
“The minister stated that the Indigenisation and Economic Empowerment Act would be repealed and replaced with an Economic Empowerment Act, which the Minister stated would be consistent with the “Zimbabwe is Open for Business” thrust.
“However, the law is yet to be amended in line with these pronouncements. Zimplats will continue to engage the Government for clarity on this matter.”
Meanwhile, Zimplats reported an increase in full-year profits to US$144,8 million for the year ended June 30, 2019, from US$2,6 million in the prior comparable period.
Revenue for the period increased from US$582 million previously, to US$630 million in the period under review.