Francis Nhema charms Implats

Published: 24 October 2013

IMPALA Platinum said its Zimbabwean unit held "constructive" talks with the new government over mining operations, including the requirement to sell majority stakes to locals.

"What we're observing is a much more considered and measured attitude emanating from discussions with the authorities," said Khotso Mokhele, chairman of Johannesburg-based Impala, which owns an 87 percent stake in Zimplats Holdings.

President Robert Mugabe's Zanu PF party won a two-thirds parliamentary majority in July elections after sharing power with the rival MDC formations since 2009.

The previous government said it won't pay for the controlling stakes companies are obliged to hand over to the state and local citizens after it agreed a financed deal with Zimplats, the country's biggest platinum producer, in January.

After the elections Mugabe handed the empowerment portfolio to ex-environment minister Francis Nhema, removing Saviour Kasukuwere whose uncompromising approach had unnerved investors and caused divisions with the central bank.

However, both Mugabe and Nhema have insisted that Kasukuwere's shunting aside - widely seen as a demotion - did not signal a change in approach.

Even so, Implats said there was a change of tone in Harare.

"We welcome the constructive tone and believe it bodes well for finding win-win solutions and continued investment in that country."

Mokhele however said it was too early to speak about an outcome on Zimplats' indigenisation deal.

"As to where we move from here I cannot say for sure, but it is likely that we will have to revisit certain areas."

Meanwhile, in its talks with the government, Zimplats also raised issues over electricity supply, mining royalties and foreign-exchange regulations.
- Bloomberg