| Mon 28 Mar 2011, 7:05 | | AQP - Aquarius Platinum Limited - Indigenisation and economic empowerment |
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AQP
AQP
AQP - Aquarius Platinum Limited - Indigenisation and economic empowerment
legislation in Zimbabwe
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
("Aquarius")
INDIGENISATION AND ECONOMIC EMPOWERMENT LEGISLATION IN ZIMBABWE
The Government of Zimbabwe gazetted the Indigenisation and Economic
Empowerment Act in 2007. This Act made provision for the indigenisation of up
to 51% of all foreign owned businesses operating in Zimbabwe. Regulations in
support of the Act were subsequently published in February 2010 in
preparation for the implementation of the provisions of the Act.
The Minister of Youth, Indigenisation and Economic Empowerment on Friday
published a statutory instrument in the Zimbabwean Government Gazette,
General Notice 114 of 2011 (the "Notice"), setting out the requirements for
the implementation of the provisions of the Indigenisation and Economic
Empowerment Act and its supporting regulations as they pertain to the mining
sector.
The Notice defines the minimum indigenisation and empowerment quota as "a
controlling interest or 51% of the shares or interests which in terms of the
Act is required to be held by indigenous Zimbabweans in the non-indigenous
mining business concerned".
The Notice requires that disposals of the required indigenisation interests
must be to defined "designated entities", which include the National
Indigenisation and Economic Empowerment Fund, the Zimbabwe Mining Development
Corporation or any company incorporated by that entity, a statutory sovereign
wealth fund that may yet be created, or an employee share ownership scheme or
trust.
The Notice states that "the value of the shares or other interests required
to be disposed of to a designated entity ... shall be calculated on a basis
of valuation agreed to between the Minister and the non-indigenous mining
business concerned, which shall take into account the State`s sovereign
ownership of the mineral or minerals exploited or proposed to be exploited by
the non-indigenous mining business concerned."
The Notice calls for all non-indigenous mining businesses to submit an
indigenisation implementation plan to the Minister within forty five days of
the date of the Notice, setting out the manner in which such businesses plan
to achieve the indigenisation quota. Such plan, once approved by the
Minister, must be implemented within six months of the date of the Notice.
To this end, Aquarius confirms that it`s Zimbabwean operating subsidiary,
Mimosa Mining Company (Pvt) Limited, is engaged in discussions with the
relevant authorities in order to establish a position that will be compliant
with the Act and beneficial to stakeholders. Further information will be made
available as and when discussions have been finalised.
For further information please contact:
In the United Kingdom
Gavin Mackay
+44 7909 547 042
In Australia: In South Africa:
Willi Boehm Stuart Murray
Aquarius Platinum Corporate +27 (0) 11 656 1140
Services
+61 8 9367 5211
28 March 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 28/03/2011 07:05:27 Produced by the JSE SENS Department.
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