Empowerment should be pragmatic: Firm
HARARE – Canada based Caledonia Mining, one of Zimbabwe’s largest gold producers, has said the southern African nation should adopt a pragmatic approach to its controversial empowerment laws to come up with solutions that help improve the country’s economy.
The mining company, which owns Blanket gold mine near Zimbabwe’s second largest city of Bulawayo, said in its annual report that it was important that the country’s power sharing administration took into consideration the level of investment in capital and skills some foreign owned companies had done in Zimbabwe.
“We remain hopeful that the government of Zimbabwe will adopt a pragmatic economic approach to the issue of indigenisation which recognises the investment of companies like Blanket in Zimbabwe’s infrastructure and human capital, and which facilitates investment to create new jobs and wealth for all Zimbabweans," said Caledonia chief executive officer, Stefan Hayden.
“The government of Zimbabwe recently introduced measures which give effect to the legislated requirement for 51 percent of all businesses in Zimbabwe to be owned by indigenous Zimbabweans within five years. Caledonia, as a member of the Chamber of Mines of Zimbabwe (COMZ), continues to work closely with the COMZ regarding the ongoing discussions with the government regarding the level and terms of indigenisation for the mining industry,” he said.
Under the empowerment laws announced by Kasukuwere last February, foreign-owned firms have 45 days from March 1 to submit to plans showing how they will transfer shareholding to black Zimbabweans.
Kasukuwere, who threatened to impose punitive taxes against foreign-controlled firms that fail to transfer majority stake to indigenous Zimbabweans by March 2015, did not say where impoverished locals will get cash to buy shareholding in large mines banks and other businesses.
Prime Minister Morgan Tsvangirai last week promised business leaders new and “more progressive” empowerment laws, in a sign of conflict in Zimbabwe’s ruling coalition over the controversial plan to place more of the economy in the hands of local blacks.
Tsvangirai, a former trade unionist seen as friendlier to business compared to veteran President Robert Mugabe who has backed the earlier version of the empowerment laws announced by Kasukuwere, said the unity government was reviewing empowerment laws.
But despite the uncertainty, Caledonia said it was pressing ahead with its expansion programmes in Zimbabwe.
Hayden said gold output at Blanket Mine increased to 22 000 ounces in July 2009.
He added that production is expected to shoot to 40 000 ounces after the company completes the expansion of its Number 4 shaft.
“Notwithstanding frequent electricity outages, gold production increased to an annualised rate of approximately 22 000 ounces per annum by July 2009, a level not achieved since February 2007,” Hayden said.
“Blanket’s immediate focus is the completion of the Number 4 shaft expansion programme, scheduled for completion by the fourth quarter of 2010 and which will enable gold production to be increased progressively to an annualised rate of approximately 40 000 ounces,” he said.
Critics fear that President Robert Mugabe and ZANU PF – who wield greater power in the unity government – could be plotting another chaotic seizure of property in the style of farm seizures that destroyed Zimbabwe’s farming sector to leave the country facing acute food shortages. – ZimOnline
The mining company, which owns Blanket gold mine near Zimbabwe’s second largest city of Bulawayo, said in its annual report that it was important that the country’s power sharing administration took into consideration the level of investment in capital and skills some foreign owned companies had done in Zimbabwe.
“We remain hopeful that the government of Zimbabwe will adopt a pragmatic economic approach to the issue of indigenisation which recognises the investment of companies like Blanket in Zimbabwe’s infrastructure and human capital, and which facilitates investment to create new jobs and wealth for all Zimbabweans," said Caledonia chief executive officer, Stefan Hayden.
“The government of Zimbabwe recently introduced measures which give effect to the legislated requirement for 51 percent of all businesses in Zimbabwe to be owned by indigenous Zimbabweans within five years. Caledonia, as a member of the Chamber of Mines of Zimbabwe (COMZ), continues to work closely with the COMZ regarding the ongoing discussions with the government regarding the level and terms of indigenisation for the mining industry,” he said.
Under the empowerment laws announced by Kasukuwere last February, foreign-owned firms have 45 days from March 1 to submit to plans showing how they will transfer shareholding to black Zimbabweans.
Kasukuwere, who threatened to impose punitive taxes against foreign-controlled firms that fail to transfer majority stake to indigenous Zimbabweans by March 2015, did not say where impoverished locals will get cash to buy shareholding in large mines banks and other businesses.
Prime Minister Morgan Tsvangirai last week promised business leaders new and “more progressive” empowerment laws, in a sign of conflict in Zimbabwe’s ruling coalition over the controversial plan to place more of the economy in the hands of local blacks.
Tsvangirai, a former trade unionist seen as friendlier to business compared to veteran President Robert Mugabe who has backed the earlier version of the empowerment laws announced by Kasukuwere, said the unity government was reviewing empowerment laws.
But despite the uncertainty, Caledonia said it was pressing ahead with its expansion programmes in Zimbabwe.
Hayden said gold output at Blanket Mine increased to 22 000 ounces in July 2009.
He added that production is expected to shoot to 40 000 ounces after the company completes the expansion of its Number 4 shaft.
“Notwithstanding frequent electricity outages, gold production increased to an annualised rate of approximately 22 000 ounces per annum by July 2009, a level not achieved since February 2007,” Hayden said.
“Blanket’s immediate focus is the completion of the Number 4 shaft expansion programme, scheduled for completion by the fourth quarter of 2010 and which will enable gold production to be increased progressively to an annualised rate of approximately 40 000 ounces,” he said.
Critics fear that President Robert Mugabe and ZANU PF – who wield greater power in the unity government – could be plotting another chaotic seizure of property in the style of farm seizures that destroyed Zimbabwe’s farming sector to leave the country facing acute food shortages. – ZimOnline