Impala Platinum Says it Will Not Exit Zimbabwe

(REUTERS) -- Impala Platinum, the world's second-largest platinum producer, said on Wednesday that it would not exit Zimbabwe despite the demands being made by the government that it hand over majority stakes in its local operations to Zimbabweans.

Implats Chief Executive David Brown told private radio station 702 Talk Radio the company still saw the southern African nation as a good investment destination.

There's huge expansion potential ... but we need certainty, he said.

Zimbabwe, which holds the world's second largest PGM deposits after South Africa, is crucial to the future of the platinum industry because of its massive resources.

But platinum companies, as Zimbabwe's largest investors, are being targeted in the government's drive to get all outside companies to hand over 51 percent stakes in their mines.

Implats has offered to hand over between 25 percent and 30 percent in equity and make up the balance through credits it hoped to receive in exchange for giving up some of its land five years ago.

But the minister in charge of Zimbabwe's black empowerment drive Saviour Kasukuwere has rejected part of Implats proposal and has given the company till Wednesday next week to hand over 29.5 percent of its Zimplats operation.

The problem with Brown is that he talks too much. We are sick and tired of his delaying tactics, Kasukuwere told Reuters.

Kasukuwere has previously threatened to cancel the mining licences of non-compliant firms.