Zimbabwe Leaning on Foreign-Owned Mining Companies

Zimbabwe's government is threatening more than 50 foreign-owned mining companies with the loss of their licenses after they allegedly failed to submit acceptable indigenisation and empowerment plans.

Saviour Kasukuwere, Youth Development, Indigenisation and Empowerment Minister, also said Thursday that the companies risk prosecution if they fail to comply with the 2008 law that mandates indigenisation, according to a story in the state-controlled newspaper The Herald.

The nation's indigenisation plans include making all mines in the nation at least 51 percent indigenous owned.

Companies that did not respond or have not complied with the indigenisation and economic empowerment legislation will be prosecuted or have their business operating licences cancelled, said Kasukuwere.

He said his office had already started the process of cancelling the license of Zimplats Holdings Ltd., which is 87 percent owned by South Africa's Impala Platinum Holdings Ltd., the world's second largest platinum producer behind Anglo American Platinum Ltd.