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Zimplats surrenders claims to Zim govt

Zimplats, which is majority controlled by Impala Platinum, has said it has agreed to cede a contentious piece of land that it has for years suffered to retain, after government had sought to take it over.

Zimplats spent $38 million on expansion projects in the year to June 30, 2015 compared to $73 million in the previous year
Zimplats spent $38 million on expansion projects in the year to June 30, 2015 compared to $73 million in the previous year

This comes after President Robert Mugabe’s government made a fresh bid in January to compulsorily acquire 27 948 hectares of its mining ground, which the company initially opposed.

Chief executive Alex Mhembere said “we have agreed that we will give government the land”.

The country’s largest mining operation, Zimplats, has an annual turnover of $512 million and mines 7 million tonnes of ore annually.

Financial research firm Equity Axis said although cases of compulsory acquisition abound elsewhere in Zimbabwe, the amicable resolution of the outstanding position between the two parties helps reduce the country’s risk profile. Daily News