Zimbabwe’s indigenisation conundrum – a timeline


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March 2011 – Government publishes a statutory instrument whose main provision was to compel mining companies with a net asset value of or above US$1.00 (rather than companies with an asset value of or above US$500,000 as set out in the Act). Implementation plans were to be submitted to the Minister within 45 working days of the Statutory Instrument’s publication, while a September 25 deadline was set for the disposal of 51 percent of shares to indigenous Zimbabweans.

November 2012 – World number one platinum miner Amplats signs a preliminary local ownership deal with the Zimbabwe government, which would see a 51 percent stake valued at close to $143 million being taken up by the National Indigenisation and Economic Empowerment Fund (21 percent), mine employees, a community trust and unnamed local investors taking 10 percent each. Under the agreement, the transaction would be funded through dividends due to the new shareholders over the next 10 years.

December 2012 – The world’s second largest platinum miner, Implats, and its joint venture partner Aquarius, agree to a $550 million deal to cede majority control of Mimosa Mine, Zimbabwe’s second largest platinum mine. The Mimosa transaction would be financed through a loan provided by Impala and Aquarius to the Zimbabwean government, payable over a period of 10 years. The loan would bear an annual interest rate of 9 percent and settled through the waiver of the right to receive 90 percent of dividends from Mimosa mine. The Zimbabwean government would pay in cash any outstanding balance at the end of the 10-year period.

January 2013 – The government of Zimbabwe and Implats announce a preliminary agreement which will see the miner selling a majority stake in its Zimbabwe unit Zimplats to locals for $971 million in a vendor financed deal.

September 2013 – Former Environment Minister Francis Nhema is appointed Indigenization Minister.

 

November 2013 – Mines Minister Walter Chidhakwa says government could let foreign-owned platinum mining firms own majority shares in their local operations if they build a refinery in the country.

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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