Impala Platinum Chief Executive David Brown has revealed that he has no plans to shut down any of the company's operations in Zimbabwe, Reuters reported yesterday (20th April).

Under current regulations, foreign ownership of mines in the country - which boasts the world's second-largest reserves of platinum and sizable diamond, coal and nickel deposits - must be limited to 49 per cent.

However, Impala already has $340 million worth of mine expansion investments in Zimbabwe and Mr Brown announced that the firm will pump in more money if the political and economic situations improve.

"We have had support from government and we are definitely not planning to wind up business in Zimbabwe," he told the news provider.

Companies have failed to be deterred from investing in Zimbabwe despite the recent revoking of a rule which permitted diamond and platinum miners to keep offshore foreign currency accounts.

Indeed, Anglo Platinum, the world's largest producer of the white metal, has confirmed that it intends to continue with its proposed 100,000 oz-per-year platinum project in the country.

Miners are hoping that Morgan Tsvangirai's side of the shared power agreement will be able to change the foreign ownership laws, as indicated during his party's election campaign.

"We have definitely seen an increase in conversation around Zimbabwe," Thys Terblanche, London-based Head of Mining and Metals at South Africa's Standard Bank, told Reuters.

"The hope certainly is that when equity markets return, when banks start lending again and there are more funding resources available, a lot of it will go into Zimbabwe."

Source:

Zimbabwe gold mines begin to re-open, but uncertainty stifling big investment (20/04/09)