The Daily News (Harare)
22 February 2005
Johannesburg — Uncertainty about the future of the mining industry in Zimbabwe is delaying a decision by South African's Impala Platinum (Implats) on the expansion of its operations there, Keith Rumble, the company's chief executive said recently.
His statement, which was published in South Africa's daily, Business Day, highlights the difficulties mining companies face in Zimbabwe, and the effect this is having on future investment in the resources sector.
Rumble, presenting the company's interim results to December, said planned expansion in SA was behind schedule due to the project delays. Implats posted lower-than-expected earnings, partly due to a 10-day strike that affected production.
He was quoted in the newspaper saying there is a "very fluid situation" in Zimbabwe, "where at times you take one step forward and two steps backwards".
According to the newspaper report Implats was "engaging with" that country's regulators to secure the comfort needed to approve expansions, and with a view to propelling the group towards a 20% increase in total platinum production, to 2,9-million ounces, from 1,8-million this year and 2-million in 2007.
Issues of concern in Zimbabwe include uncertainty about the percentage of mining operations empowerment partners will need to be accommodated in.
There were potential problems over the holding of foreign currency accounts and implementing a bilateral accord with Zimbabwe to secure property and business rights for South African investors. He was unable to say when these would be resolved.
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