Impala Platinum Holdings , the world’s second-largest producer of the metal, and Aquarius Platinum, fell in Johannesburg trading after Zimbabwean President Robert Mugabe signed a law that may require them to cede control of a mine.
Aquarius, based in Bermuda, slumped as much as R25,85, or 20,07%, to close 17,69% down at R106,01 on the JSE yesterday, its biggest one-day loss in almost three years. Impala traded as low as R296,34 before closing at R313, 5,05% lower than the previous day’s close of R329,65.
The companies jointly own the Mimosa mine, east of Bulawayo in Zimbabwe.
Zimbabwe’s mining industry is seeking clarification on whether it is covered by the Indigenisation and Economic Empowerment Act, Joseph Malaba, CE of the Chamber of Mines, said from Harare yesterday.
The act, signed into law on Friday , requires foreign companies to offer 51% stakes in assets to black Zimbabweans.
The law “isn’t clear on whether it covers the mining industry, which was to be covered by separate legislation,” Malaba said. “We’ll be attempting to get clarification in days to come.”
A proposed law covering mines lapsed on February 16 because it was not signed by Mugabe, the Harare-based Financial Gazette reported that day. Zimbabwe has the world’s second-largest reserves of platinum and chrome after SA, along with deposits of gold, coal, diamonds and nickel. Other foreign companies with assets in Zimbabwe include Anglo Platinum and Rio Tinto Group and British banks Standard Chartered and Barclays .
The new legislation comes ahead of presidential and parliamentary elections scheduled for March 29. | | | | Carli Lourens and Brian Latham , Business Day | | Tuesday, March 11, 2008 | |
