Thursday, February 14, 2013

Communist One Party States vs Platinum

Last year it was the communist one party state of South Africa causing supply disruptions in the platinum market and spiking prices. Now their smaller neighbouring communist one party / one man state is envious of SA's efforts to destroy their precious metal mining industry and has therefore taken mining rights off Zimbabwe's largest platinum miner and thrown them up for grabs and no doubt for bribes. Why would any foreign company want to sink any capital into this despotic hole?


13 Feb 2013

Original source

THE government has repossessed over 27,000 hectares of land from the country’s top platinum miner, Zimplats, with immediate effect.

This comes as the State moves to reclaim idle claims in a bid to court new investors, Mines minister Obert Mpofu said yesterday.

Mpofu told a Press conference that the repossessed claims were enough to accommodate five big investors, amid disclosures the platinum mining firms were holding on to the land for speculative purposes.

The figure represents nearly a tenth of the size of Harare. The measure, according to Mpofu, will extend to all mining companies under-utilising their claims.

“As the sole regulator and promoter of the mining industry in terms of the mines and Minerals Act (Chapter 21:05), the ministry is focusing on the creation of real opportunities and investment space by making more land available for new investments, attracting new players into the industry and acting on excess and unutilised ground,” Mpofu said.

“This will be done through reviewing all mining rights deemed to be in excess. To that end and following protracted discussions on the release of excess ground, my ministry is taking a step forward to repossess excess ground from Zimplats measuring 27 948 hectares.”

Mpofu said the claims would be up for grabs using an approved indigenisation model compelling foreign-owned companies to sell 51% to black Zimbabweans. Zimplats, a unit of South Africa’s Impala Platinum, has already complied with the country’s empowerment law.

“We have seen that the current model at the diamond companies with ZMDC holding 51% or more shareholding is viable and we could see that in the new platinum ventures, of course with the approval of the indigenisation ministry,” he added.

Zimbabwe has the second largest known platinum reserves in the world after South Africa.

Chart from ABC Bullion

No comments:

Post a Comment