Impala Platinum Holdings Ltd. (IMP)’s mining activities in Zimbabwe aren’t benefiting the country because its local unit hasn’t built a refinery, President Robert Mugabe said on state-owned television.
“They have been sending raw platinum to South Africa for processing saying we cannot build a refinery here because we do not have Enough quantities yet warranting a refinery,” Mugabe, 89, said today. “So all by-products such as gold, palladium they don’t account for them to us.”
Impala’s unit, Zimplats Holdings Ltd. (ZIM) operates Zimbabwe’s biggest platinum mine The country has the world’s second-largest deposits of the metal after neighboring South Africa.
Zimbabwe has compelled Johannesburg-based Impala to cede 51 percent of Zimplats to the state and black Zimbabweans and today the government gazetted a plan to seize some of the unit’s land.
Foreign companies aren’t all compelled to sell or cede 51 percent of their shares to black Zimbabweans, Mugabe told the state broadcaster.
“It’s not always 51 percent and 49 percent,” Mugabe said, adding that the law should have been implemented earlier. “Not implementing the law was a defiance of God’s own order.”
Mugabe’s Zimbabwe African National Union-Patriotic Front party passed the law, known as the Indigenization and Empowerment Act in 2007. Enforcing the law began in 2010. Miners and other companies have been compelled to show how they comply with the rule.
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