Impala Platinum (Implats) has agreed to hand over a seven per cent stake in its Zimbabwe unit to local investors to meet demands from the government.

Zimplats will establish a "community share ownership trust", which will form the first part of its indigenisation plans.

Robert Mugabe's government wants all foreign-owned firms to sell a 51 per cent equity stake to local black investors, and has been putting pressure on mining firms recently.

A threat to remove Zimplats' licence was issued, but this has since fallen away after the company came up with a revised plan to meet the policy.

"Shares, constituting seven per cent of Zimplats' issued share capital, will be sold to the Trust at a fair, independently determined value," the miner said in a statement.

"Zimplats undertakes to fund the Trust to the amount of US$10 million over a period of three years to enable it to achieve its objectives prior to it receiving dividend income streams from the Trust's shareholding in Zimplats.

"The Trust will provide a long-term investment opportunity for the operation's local communities and enable them to share in the future growth of Zimplats."

Reaching an agreement with the Zimbabwe government should offer greater certainty to investors.

According to Reuters, chief executive David Brown said Implats plans a new expansion programme at Zimplats from 2014, which is likely to raise output to 360,000 oz/y.

He also offered to help state firm Zimbabwe Mining Development Corporation to mine a claim that has not yet been exploited.

"In 2006, Zimplats released ground with 36 million ounces worth of resource. We note, however, that there's no production on those claims," Brown said.

Sources:

UPDATE 2-Locals to get 10 pct of Zimbabwe unit:Implats (13/10/11)


Zimplats establishes a community share ownership trust (13/10/11)

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