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Press statement on the promulgation of General Notice 114 of 2011 Indigenisation and Economic Empowerment (General) Regulations, 2011 dated 25 March 2011
The Chamber of Mines of Zimbabwe
April 08, 2011

1. The Government through General Notice 114 of 2011 has set out the minimum requirements for indigenisation implementation plans to be submitted by non indigenous businesses in the mining sector.

2. The requirements are as follows:

• A minimum indigenisation quota of 51% equity with no credits accepted;
• Non indigenous businesses to submit plans for indigenisation within 45 days from date of publication of the notice;
• Non indigenous businesses to achieve the 51% quota by disposing the shareholding to designated entities within six months;
• The designated entities, with the exception of the employee and the management share ownership trust are essentially government entities;
• The value of the equity to be disposed to be determined after taking into consideration the State's sovereign ownership of minerals exploited or to be exploited by the non indigenous business;
• Level 12 fine or imprisonment for a period of five years or both for non compliance or undervaluation of business.

3. The Chamber's own proposals to Government had been for a minimum indigenisation quota of 26% equity with the balance of 25% made up of credits arising from corporate social investments, support to the small scale mining sector, local procurement, skills development, release of ground and establishment of new businesses.

4. The concept of indigenisation and economic empowerment is accepted and supported by the industry and the industry believes it should be done in a way that will achieve the twin paramount objectives of growth and development of the industry and the Zimbabwe economy and broad based economic empowerment.

5. The Chamber is currently engaged with the Government through the Ministers of Youth, Indigenisation and Economic empowerment and Mines and Mining Development in pursuit of mutually beneficial situation.

6. The public will be kept informed of any development.

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