HomeLocal NewsCaledonia Holdings licence cancelled

Caledonia Holdings licence cancelled

-

Youth Development, Indigenisation and Empowerment minister Saviour Kasukuwere on Friday cancelled the operating licence of Caledonia Holdings which owns Blanket Mine after it failed to comply with indigenisation regulations.

Blanket Mine is based in Gwanda and extracts gold.

The company had been ordered to provide a final indigenisation implementation plan within seven days or face licence cancellation.

According to sources, Caledonia alleged failed to provide a “satisfactory” empowerment plan to Kasukuwere.

Kasukuwere is empowered by law to cancel operating licences of companies that fail to comply with empowerment legislation seeking to cede 51% shareholding to locals.

The development comes after Barclays Bank, Standard Chartered, six mining companies and five other firms were given a two-week ultimatum to submit “acceptable” indigenisation plans or risk losing their operating licences.

Zimplats and Mimosa, Duration Gold Mine, Blanket Mine and Murowa Diamonds are some of the mining companies that could be affected.

British American Tobacco, Nestle Zimbabwe and cotton processor Cargil Zimbabwe are also affected.

Kasukuwere gave BAT and Nestle the order to comply or risk losing their licences.

Under the General Notice 114/2011 companies were supposed to submit indigenisation plans spelling out how they intended to meet 51% equity participation by locals within five years.

Recent Posts

Stories you will enjoy

Recommended reading