IMPALA Platinum, the world's second largest platinum producer, wants to retain full control of its Zimbabwe operations Zimplats and is confident it will not have to transfer 51 percent of the stake to locals, chief executive David Brown said on Thursday.

"We are confident that it will not be at 51 percent equity. We believe that negotiations are ongoing with government and we believe an adequate and appropriate level of ownership is one that will be final result," he said at a presentation after the group unveiled its annual results.

"We are not necessarily willing sellers," he said, adding the group also wanted to retain majority control over the operations there.

Brown -- who is pushing a US$450 million expansion of Zimplats' operatrions -- also said the government's empowerment programme could potentiall hurt further invest ment in the country.

“What they are doing is very bad for the country ... and has the potential to retard investment,” he said in comments that were unusually blunt for a company official on the issue.

Impala owns 87 percent of Zimplats, the country’s largest platinum producer, and also retains a 50 percent interest in Mimosa Mine, located in the Midlands town of Zvishavane.

The company is under pressure to comply with empowerment legislation that requires all foreign companies to transfer control and ownership of at least 51 percent of their issued share capital to locals as part of government measures aimed at empowering the country’s historically poorer black majority.

Authorities have been critical Implats’ compliance plan saying it did not meet the minimum thresholds and threatened to cancel the companies operating licence and seize its assets.

Impala says it has submitted a three-point compliance plan that takes into account a 2006 agreement with the government under which the South Africa-based company gave up 36 percent of mineral resource in return for so-called empowerment credits.

The company contends insists that deal in addition to about 26 percent equity transfer and investments in local communities development should meet the government’s minimum threshold.

“We have a valid contract, we have a binding contract and that contract is in essence what I’d like to see honoured," Brown said in a recent interview.

“Because if that contract is honoured I’d certainly believe it would create a great faith that contracts and promises would be honoured. At the time when we discussed these matters it was accepted it would be taken into account.”

However, the government insists that the 2006 deal has since been overtaken by events adding mineral resources in the country are a sovereign asset and do not belong to mining companies.

Brown says he is not overly concerned with the increasingly negative rhetoric from government officials and is confident an amicable solution would be reached.

"I think, at the end of the day, politicians will always indulge in populist rhetoric. I get that. I understand that’s their job mandate," he said.

“The President (Robert Mugabe) himself said on several occasions we are a model investor (and is) appreciative of our involvement in the social fabric of the country.”