Impala Platinum's (Implats) chief executive officer David Brown has said the indigenisation policy being pursued by the Zimbabwean government makes future investment decisions "problematic".

The new law requires foreign companies to give up 51 per cent of their equity to black Zimbabweans.

"If we were forced into a 51 per cent equity level, it is quite clearly not a position that we would like," he said at the presentation of the company's full-year results.

Mining Weekly reports him as saying that Implats will continue negotiations with the government and he remains confident the company will retain an "adequate and appropriate" level of equity.

The investment decisions Brown referred to could include a third phase of expansion at Zimplats, the company's subsidiary in Zimbabwe.

Zimplats is on course to increase platinum production by 90,000 oz to 270,000 oz/y, the miner said.

"Recent developments regarding indigenisation have made future investment decisions somewhat problematic," Brown added.

Implats reported strong annual production results, with gross platinum output up 5.5 per cent to 1.84 million ounces.

The company forecasts hitting two million ounces per year in 2014, though it indicated that 2012 would see a slip to around 1.7 million ounces.

Source:
 

Implats confident of attaining ‘appropriate’ equity ownership level in Zimbabwe (25/08/11)

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