By Alex Bell
02 November 2012
International mining giant Amplats has signed off on a deal that will see more than half of their shareholding in their Unki mine being handed over in Zimbabwe’s indigenisation drive.
In a joint statement this week Amplats and the Zim government said the 51% stake is valued at close to US$143 million. The plan will see a state fund taking 21% of the mine while employees, a community trust and unnamed local investors will take 10% each. According to the statement, the deal will be funded through dividends due to the new shareholders over the next 10 years.
Amplats is the latest big name foreign company to bow to pressure to hand over majority shareholding of its Zim enterprises, in the ongoing ZANU PF drive to take over businesses. The campaign has already seen the South African Impala Platinum group surrender a 51% stake in its Zimplats unit, after threats from the Zim Empowerment Ministry.
At the same time, sugar producing company Tongaat Hulett, has until next week to fall in line with Zimbabwe’s ‘empowerment orders’, after being given a 14 day deadline last month to submit its indigenisation plans. Tongaat Hulett’s sugar operations in Zimbabwe comprise the wholly owned Triangle Sugar operation as well as a 50.3% holding in Hippo Valley Estates.
In a letter dated October 23rd and addressed to Triangle, the Ministry of Indigenisation warned that it was losing patience with the sugar company and “should we not receive a proper compliant plan within the prescribed period, ministry and government would take it that shareholders of Triangle are not interested in continuing to do business in the country.”