Saturday, October 8, 2011

Rio Tinto's Murowa Diamonds surrenders 51pc stake

MUROWA Diamonds has agreed to surrender 51 percent stake in line with Government's
Indigenisation and Economic  Empowerment regulations.
This comes as delegates to the inaugural Zanu-PF Indigenisation and Economic Empowerment
Conference here yesterday made it clear that it was time for economic emancipation through
ownership of the country's mineral resources.

Zanu-PF secretary for Indigenisation and Economic Empowerment Cde Saviour Kasukuwere,
confirmed that Murowa Diamonds complied with the empowerment regulations on Thursday.
"Murowa Diamonds wrote to us yesterday (Thursday) saying they have given up 51 percent
shares and these would be given to our people," said Cde Kasukuwere, who is also the Minister
of Youth, Indigenisation and Empowerment.

Cde Kasukuwere said the implementation of the empowerment regulations had moved a gear
up with indications that President Mugabe would be launching the Ngezi Community Share
Ownership Trust worth over US$100 million at Selous, Mashonaland West Province, next week.
"On Thursday, His Excellency the President will launch our programme at Selous. A 10 percent
stake worth over US$130 million will now be in the hands of our communities. By December we
will have more than 100 Community Trusts," he said.
Cde Kasukuwere said the setting up of the Community Share Ownership Scheme for the Ngezi
Community was agreed with Zimplats.
"Other substantive proposals are still being assessed and there are indications that some of
them will be approved with necessary adjustments," he said.

Cde Kasukuwere, however, said there was still some resistance to the empowerment
"The general trend of submitted plans shows a level of resistance in moving away from the proposal by the Chamber of Mines of Zimbabwe. The mining businesses are offering to dispose
26-30 percent as equity on commercial value. The balance is to be claimed as empowerment
credits for corporate social responsibility programmes. It appears this approach has been
agreed to and co-ordinated under the Chamber of Mines of Zimbabwe," he said.

Cde Kasukuwere said some mining firms were still proposing to dispose of equity to indigenous
Zimbabweans in their individual capacities or as a consortium rather than to designated entities
as prescribed by the law. "My overall assessment is that over 90 percent of the submitted proposals do not meet the
minimum requirements of the General Notice 114 of 2011 and there seems to be an element of
"However, I am meeting the various mining houses to achieve agreement on compliance with
the law," he said.
Cde Kasukuwere said since the promulgation of the empowerment regulations, more than 1 000
businesses have submitted their provisional implementation plans as required by the law.

But while some mining firms are still reluctant to abide by the law, Zanu-PF delegates here are
definite that there is no going back on the empowerment regulations as it was in line with the
party's 2010 Mutare National People's Conference resolutions.

"The Zanu-PF Presidium is totally committed to supporting this important initiative led by Cde
Kasukuwere. Cde Kasukuwere we are fully behind you and some of us will leave no stone
unturned to achieve our goal," said Zanu PF national chairman Cde Simon Khaya-Moyo in his

He added: "The indigenisation and economic empowerment programme is a flagship policy of
the party that should be implemented without fear or favour. We ask for permission from
no-one. We must proceed with that zeal and commitment, which made us succeed in liberating
our country.

Zimbabwe Herald