HARARE/JOHANNESBURG Feb 24 (Reuters) – Zimbabwe has
rejected a local ownership plan submitted by Mimosa Holdings, a
50-50 joint venture between Aquarius Platinum and Impala
Platinum, the two miners said, fuelling uncertainty
about the future of the venture.
“A clear and present danger of expropriation now exists for
Mimosa, a risk which has dogged Aquarius since 2009,” Liberum
Capital said in a note.
“Since 2009 Aquarius (stock) has underperformed its South
African peers by 35-45 percent. A significant reason being its
greater exposure to Zimbabwe. We still feel seizure of Mimosa
represents a worse case scenario and that a compromise may be
reached.”
Shares in London-listed Aquarius, which has a greater
exposure to Zimbabwe than its peers, were down 7.7 percent at
134.3 pence by 0902 GMT on Friday, while Implats shares were
down 0.2 percent at 165.93 rand in Johannesburg.
A heavily criticised law, which mandates that all foreign
miners sell a 51 percent stake to local Zimbabweans, has
unnerved overseas investors and further divided the government
President Robert Mugabe formed with rival Prime Minister Morgan
Tsvangirai in 2009.
“Mimosa was advised by the Zimbabwean Minister of Youth
Development, Indigenisation and Empowerment that a portion of
its Indigenisation Implementation Plan has been rejected,”
Implats said.
Both Implats and Aquarius said they were concerned about a
statement made by the minister that unless an agreement is
reached with the economic empowerment fund to transfer the
required shareholding to the fund within 30 days, enforcement
mechanisms would be activated.
The two companies said they would negotiate with the
minister to reach a mutually acceptable solution.
Continued…
