18 December 2012

Zimbabwe: Mimosa Writes Off RBZ Debt

MIMOSA Mining Company, Zimbabwe's second largest platinum miner, has written off the US$57 million it is owed by the Reserve Bank of Zimbabwe, a Cabinet minister has said. Youth Development,

Indigenisation and Empowerment Minister Saviour Kasukuwere told Star FM last week that the deal was in part fulfilment of the company's indigenisation requirements. Mimosa is among several mining companies that are owed by the RBZ after the central bank raided their FCAs to meet the country's critical foreign currency requirements before dollarisation in 2009.

"One of the deals we have done with Mimosa is that we have written off the US$57 million that the central bank owes to this company. We are internalising billions of dollars into the national account," said Minister Kasukuwere.

No comment could be obtained from Mimosa or the cerntral bank by the time of going to print yesterday. The RBZ also owes gold producers US$30 million for gold deliveries dating back to July 2008.

Apart from writing off the debt, Mimosa agreed to give 10 percent stake to the Zvishavane Community Share Trust.

The company also pledged US$10 million towards community development programmes in Zvishavane.

The Indigenisation and Economic Empowerment Act compels foreign-owned firms to cede at least 51 percent stake to indigenous Zimbabweans.

Mimosa became the third high-profile mining company to give 10 percent shareholding to local communities after Zimplats and Unki. The platinum mining firm is 50 percent owned by each of Aquarius and Impala Platinum, which also owns Zimbabwe Platinum Mines.

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