Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Zimbabwe Rejects Black Empowerment Plan From New Dawn Mining

July 13 (Bloomberg) -- New Dawn Mining Corp., operator of four producing gold mines in Zimbabwe, became the first foreign miner to have its proposals on black empowerment rejected by the government.

“We’ve rejected their proposals because they bypassed regulatory authorities when they bought Falcon Gold Ltd. and Olympus Mine without approval from the Competition Commission,” Saviour Kasukuwere, indigenization and economic empowerment minister, said today by phone from the capital of Harare. “These mines were bought outside Zimbabwe, but later merged here, which is unacceptable.”

Zimbabwe is the holder of the world’s second-largest reserves of platinum and ferrochrome after South Africa. The empowerment law, which forces foreign operators to cede or sell 51 percent of their local assets, affects miners including Anglo American Plc, Rio Tinto Group, RioZim Ltd. and Impala Platinum Holdings Ltd.

The law, known as the Indigenization and Empowerment Act, doesn’t allow white Zimbabweans or foreigners to own businesses with assets in excess of $1 million. No approvals have so far been granted.

Plans by mining companies to sell majority stakes to locals “fall short” of government expectations, Kasukuwere told state-owned television on July 6. The government will take steps to “take over those assets,” he said at the time.

About 173 mining companies, many of them closely held, submitted their plans to the southern African nation’s government explaining how they will dilute their foreign or white shareholdings.

New Dawn, which is listed in Toronto, didn’t answer calls to its switchboard today outside of office hours.

To contact the reporter on this story: Godfrey Marawanyika in Harare at asguazzin@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.