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Oliver Kazunga Senior Business Reporter
ZIMPLATS says it is ready to operationalise an employee share ownership scheme once it is approved by the Reserve Bank of Zimbabwe. The workers would have 10 percent shareholding in the mining firm. Zimbabwe’s indigenisation and economic empowerment regulations gazetted in 2010 compel foreign-owned businesses operating in the country to achieve part compliance with the law through the disposal of at least five percent shareholding to employees, including management.

“The company has continued to engage with the government of Zimbabwe with regard to the indigenisation implementation plan. In this regard, the company agreed with the government on the sale of a 10 percent equity stake in the operating subsidiary to the Zimplats Employee Share Ownership Trust (ESOT) as part of the company’s indigenisation implementation plan,” said Zimplats in a statement accompanying financial results for the year ended September 31, 2015.

“The process for the sale of this 10 percent equity stake to the ESOT is now awaiting approval by the RBZ. Once the RBZ approval has been obtained, the company will proceed with the implementation of the sale of the 10 percent shareholding to the ESOT.” It said implementation of the outstanding components of the Phase II expansion project remains on schedule for overall project completion in 2016.

Zimplats during the period under review spent $44 million (excluding payments to government and related institutions) and the amount decreased by four percent compared to the previous quarter while total payments to the government in direct and indirect taxes did not change from the $7 million reported in the prior quarter.

According to the report Zimplats’ revenue increased 67 percent from the previous quarter due to a drop in metal prices. “Direct operating costs were 24 percent higher than the previous quarter due to the increase in overall sales volumes.

“Ore mined improved by 10 percent from the previous quarter largely due to an increase of 117,400 tonnes in ore mined from the open-pit operation. Production from the underground mines increased by 32,900 tonnes compared to the previous quarter. “The Bimha Mine redevelopment project is progressing well and the mine is on schedule to reach full production in April 2018 as planned,” it said.