It takes some nerve for a company to continuing investing in Zimbabwe in the face of the impending indigenisation compliance deadline as well as other measures interpreted as anti-investment.
Besides the above connundrum, coupled with uncertainty regarding a section of its mining lease area, Zimplats is firmly focused on the Ngezi Phase 2 projects and other Zimbabwe-based projects, the company said in a statement highlighting its results for quarter ended 31 December 2015.
Zimplats said the Ngezi project implementation was going on very well and that it remained on schedule for overall completion in 2016. “A total of $447m of the project budget had been spent as at 31 December 2015,” said the company.
The company is also going ahead with refurbishment of the Selous Metallurgical Complex base metal refinery project for which it has spent $12.2m on the refurbishment of the Selous Metallurgical Complex base metal refinery project, with US$9.9m committed as at 31 December 2015.
The decision to refurbish the base metal refinery is in line with government’s push for local beneficiation and value addition.
In a preliminary notice, the Zimbabwean government has requested the company to release land measuring 27 948 hectares for compulsory acquisition, it was mentioned in the report. Zimplats has since lodged a formal objection to the preliminary notice.