A top Zimbabwe cabinet minister‚ who asked not to be named‚ confirmed to I-Net Bridge/ BDlive on Monday (22 April) that all resource companies in Zimbabwe would be affected by the amendment despite the earlier agreements. He said compensation would be paid through the resources that the companies mine in the country.
"We will not pay for our resources. When companies do their evaluation‚ they must count ownership of our resources. The resources belong to us and we are planning this for mining companies‚" said the minister who has knowledge of developments around the indigenisation policy.
Bloomberg on Monday (22 April) quoted a part of the draft law which reads: "The motivation for this position arises out of the desire to ensure that the people of Zimbabwe benefit fully‚ and without cost whatsoever‚ from enterprises that exploit their God-given natural resources."
Confidential sources said the amendment was in response to President Robert Mugabe's sharp criticism of Empowerment Minister Saviour Kasukuwere‚ saying he had made a mistake in agreeing to pay compensation for shares ceded by Zimplats and other foreign mining companies.
"The problem is that Zimplats gave us 51% shareholding saying they were loaning us the money (for the acquisition of the shares) and then we would have to pay back. That is where our differences are‚" Mugabe said in a state televised interview ahead of celebrations to mark his 89th birthday.
The amendment to the Indigenisation and Economic Empowerment Act comes despite earlier agreements between the government and Anglo Platinum‚ Impala Platinum and Aquarius Platinum which have all signed deals to cede majority shares in their Zimbabwe units in return for monetary compensation.
Impala Platinum runs Zimplats; Anglo Platinum operates Unki mine - which has recorded a 19% decline in first quarter platinum output - while Aquarius and Implats jointly own Mimosa mine.
Officials from Zimplats‚ Unki and Mimosa would not immediately comment on the new developments. Busi Chindove‚ spokesman at Zimplats said the company's chief executive‚ Alex Mhembere was "out of the country for some meetings".
Independent economic analyst‚ Moses Moyo said the "selective" amendment to the indigenisation law and its application for the mining sector raised the uncertainty of Zimbabwe' regulatory framework.
"You can never know when things are going to change and you cannot predict with certainty any future operations and plan well‚" he said.
A mining law expert based in Harare said the new requirements would deal a blow to the mining sector‚ considered crucial in economic turnaround efforts. He added that the amendment would see investments diminishing from Zimbabwe.
The indigenisation law was first promulgated in 2007 and seeks to compel foreign companies to cede 51% shares to black Zimbabwean groups. However‚ it is understood that the requirements for banking companies have now been eased as it is now "likely that compliance thresholds below 51% will be considered" for the foreign banks.
Foreign mining companies in Zimbabwe - which has the world's second largest platinum reserves - include giant SA platinum producers‚ Impala Platinum‚ Anglo American Platinum and Aquarius Platinum.
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