The Zimbabwe government has rejected a black empowerment proposal submitted by South Africa’s Impala Platinum for its Zimbabwean operations, the company announced on Friday.

Impala said in a statement that its discussions with the Zimbabwean government over an acceptable indigenization implementation plan (IIP) had collapsed.

The company had been negotiating with Zimbabwe after submitting its IIP to the authorities in November 2011 under which it offered some shares in its Mimosa mine to black Zimbabweans.

“In a letter dated 22 February 2012, Mimosa was advised by the Zimbabwean Minister of Youth Development, Indigenisation and Empowerment that a portion of its IIP has been rejected,” the statement said without elaborating.

The company said it was concerned by a subsequent threat by the minister that “enforcement mechanisms will be activated” unless an agreement was reached within 30 days with the National Indigenisation and Economic Empowerment Fund (NIEEF) to transfer the required shareholding to NIEEF.

“Shareholders are advised that negotiations with the Minister will be undertaken in an attempt to reach a mutually acceptable solution,” the company said.

Zimbabwe last year gave 11 foreign-owned firms until the end of August to submit proposals outlining their programs to cede 51% of shareholdings to black Zimbabweans within the next five years or risk losing their operating licenses.

Other affected companies included British-owned financial institutions Barclays Bank and Standard Chartered, gold miners Duration Gold Mine and Blanket Mine as well as Murowa Diamonds and Pan American Mining.

British American Tobacco, infant foods manufacturer Nestle Zimbabwe and cotton processor Cargill Zimbabwe are also affected.

Source African Press Agency

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