Zimplats, the Zimbabwe local unit for Impala Platinum (Implats), has taken a step forward in its negotiations with the country's government concerning its Indigenisation Plan.

The platinum mining company has agreed a process to facilitate the production and submission of a revised Indigenisation Plan by mid-November, following a meeting between Zimplats' management team and the Zimbabwean minister of youth development, indigenisation and empowerment, Savior Kasukuwere.

More importantly, a statement by the company confirms that the threat of cancellation of the Company's operating licence, which followed the rejection of its initial Plan, has "fallen away".

"The Company will begin the process by implementing a Community Share Ownership Trust. Work on the registration of the Trust will commence shortly," the company said.

Zimbabwe's new Indigenisation and Economic Empowerment Legislation required a majority stake of mining companies to be owned by local black residents. The government rejected Zimplats' initial share transfer plan submission, prompting the threatened cancellation of its operating licence.

Responding to the legislation in August, Implats chief executive officer David Brown said that the indigenisation policy makes future investment decisions "problematic" for the company.

However, the world's second largest platinum producer has since confirmed that it will continue with expansion plans, which are set to boost investment in the country to $1 billion (£632 million).

Source:

Indigenisation and economic empowerment legislation (13/09/11)

Zimplats to submit revised share transfer plan by November (13/09/11)

Miners close to deals with Zimbabwe on indigenisation (09/09/11)

Impala Platinum: Zimbabwe indigenisation policy 'problematic' (26/08/11)

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