22 September 2017
   
Tsvangirai to rest for a while, says his aide
Late VP Joseph Msika’s widow dies at 89
Mugabe blasts 'Giant Gold Goliath' Trump
Poll dates row: Judge dismisses Tsvangirai
Voter registration deliberately slow:MDC
Mugabe computers obsolete before use
Anger as MPs jump registration queue
Mangudya says never said Bond to end crisis
MORE NEWS
Sanganayi/Hlanganani Expo grows by 44 pct
Court okays NSSA deal to bailout CSC
MORE BUSINESS
Kwese TV partners Orange Botswana
Inaugural Zim Jazz festival on Saturday
MORE SHOWBIZ
Dembare on top after trashing Chapungu
Caps United dismiss hosts Hwange 1-0
MORE SPORTS
Currency crisis and the art of deception
Unpacking the Zimbabwean mess
MORE OPINION
 
G40 Crew now Zim’s Gang of Four?
Mandela vs Mugabe: A legacy of ashes
MORE COLUMNISTS
 
 
Metallon Gold risks losing licence
02/12/2012 00:00:00
by Business Reporter
 
Zimbabwe mines at risk ... Mzi Khumalo
 
RELATED STORIES
Mugabe targets 100pc black ownership
Kasukuwere: Foreign firms face prosecution
Mugabe launches Mat North share trust
Minister: colonial laws blocking empowerment
Mugabe launches Marange share scheme
Gono creating two centres of power
Empowerment levy on the cards

ZIMBABWE’S  biggest gold producer, Metallon Gold, risks losing its operating permit after failing to comply with the country’s indigenisation programme, a Cabinet minister has warned.

Empowerment Minister Saviour Kasukuwere said Metallon Gold, owned by South African businessman Mzi Khumalo, was resisting pressure to set up community share ownership schemes at its mines around the country.

Kasukuwere said the company, along with John Mack Gold Mine and Canada-based Vumbachigwe Mines face punitive action which could include the revocation of their licences.

"We have always been very worried about Metallon Gold. They are the biggest gold mining company in the country, but do not want to comply," Kasukuwere told the Sunday Mail.

"We have now written a final warning to the three mining companies, telling them that if they do not comply they will lose their licences."

Zimbabwe’s economic empowerment legislation require foreign firms to transfer control and ownership of at least 51 percent of their operations to locals including setting up share ownership schemes for communities where they operate.

Last month, South African media reported that Metallon planned to hand over five percent equity in the group to an employee ownership scheme as part of its indigenisation programme.

But Kasukuwere said the company’s compliance proposals did not meet the government’s requirements.

"We have always been very worried about Metallon Gold. They are the biggest gold mining company in the country, but do not want to comply," he said.

"We have now written a final warning to the three mining companies, telling them that if they do not comply they will lose their licences."

Valued at more than US$320 million and employing some 3,600 workers, Metallon Gold owns five mines in Zimbabwe, including Arcturus mine, Shamva mine, How mine, Redwing mine and Mazowe mine.

Kasukuwere also warned that Vumbachigwe Mines, which has operations in Mashonaland Central province, could also be kicked out of the country.

"We consulted them numerous times, asking them to give us their proposals for compliance. We even approached and asked them to contribute to the Mashonaland Central Community Share Ownership Trust,” he said.

“They, however, refused, yet they have the biggest gold mines in the province. Our patience has run out; we will not be deterred in implementing the law when dealing with them."



Advertisement

"I held a discussion with Mines Minister (Obert) Mpofu and (have since written to him) a proposal to revoke the mining licence of Vumbachigwe Mine. We have already said there are no sacred cows when it comes to the laws of the land."

"Those (foreign companies) who are no longer interested in doing business in this country must leave. We have already said 'lets share the national cake and some are refusing.'"


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker