INDIGENISATION and Empowerment minister Saviour Kasukuwere has reportedly threatened to act against Duration Gold, blaming the mining firm for failing to comply with the country’s equity laws.
Report by Bloomberg/Business Reporter
Kasukuwere told Bloomberg News that the government would rein in on Duration after it emerged that it has delayed complying with a law compelling foreign-owned firms to dispose of 51% stake to locals.
“We will have to flex our muscles on them just because they are not co-operating at all,” reportedly said Kasukuwere.
“Other companies here are all co-operating to meet our empowerment laws, but it’s just them who are refusing.” When asked for comment by NewsDay, Kasukuwere said he was engaged in a meeting.
Zimbabwe, which with South Africa holds more than three-quarters of the world’s platinum, passed a law two years ago that compels all foreign and white-owned businesses with assets worth more than $500 000, to sell or cede 51% of their shares to black citizens.
Duration Gold is owned by London-based Clarity Capital and Zimbabwean mining families — the Muirs and the Thompsons.
Duration is licensed to market and sell gold on the open market. It sells gold at international spot prices and receives freely transferable foreign currency in return.
The company is cashflow-positive and generates healthy earnings before interest, tax, depreciation and amortisation from its current operations.
In its latest monthly economic review, the African Development Bank attributed improved performance of mining counters trading on the Zimbabwe Stock Exchange to growing confidence which came after mining giants complied with the empowerment laws.
Already platinum giants Zimplats and Mimosa have partially complied with the law.
“The mining index has been on an upward trajectory for the entire month. This may be a result of a reduction in scepticism in the sector, as most mining companies complied with the indigenisation regulations and are more focused on doing business,” reads the report.