Foreign mining operations in Zimbabwe

Wed Jul 20, 2011 | Reuters

July 20 (Reuters) - Zimbabwe has rejected all 175 local ownership proposals received from foreign mining companies, the empowerment minister said on Wednesday, threatening to "kick out" miners that do not meet a September deadline on black ownership.

Under the controversial law, foreign miners operating in Zimbabwe must sell a majority stake to local black investors or face losing their assets.

Following is a summary of mining companies with operations in Zimbabwe:

IMPALA PLATINUM

- Zimplats Holdings is 87 percent owned by Impala Platinum (Implats) . In the 2010 financial year it produced 173,900 ounces of platinum, about 9 percent of group production.

This is not insignificant: the platinum world is dominated by a handful of producers. Implats is the world's second-largest platinum producer and responsible for about 25 percent of global output.

Implats also has a 50:50 joint venture -- Mimosa -- with Aquarius Platinum . In the last financial year it produced 101,200 ounces of platinum in concentrate.

ANGLO PLATINUM

- The world's largest platinum producer owns 100 percent of the Unki mine in Zimbabwe. It is hoping to reach full production of 120,000 tonnes per month in the third quarter of 2013.

RIO TINTO

- The global mining giant has the Murowa diamond mine in Zimbabwe, with capacity to produce 250,000 carats per annum through its processing plant. Output was 178,126 carats in 2010.

The company says on its website that "the operation has the potential to expand to six or seven times its production level. The mine was set up to operate for five years but at its current rate of production could operate for more than 50 years."

It says a feasibility study is under way for this expansion and that talks are under way with the government about the investment required. It is not clear how the government's local ownership drive would affect these plans.

MWANA AFRICA

- Pan-African and London-listed miner Mwana Africa has several operations in Zimbabwe. Among them is the Freda Rebecca gold mine, a small operation with proven reserves of 207,000 ounces as of March 31, 2009.

It also has a 52.9 percent stake in Bindura Nickel Corporation, the only integrated nickel mine, smelter and refinery operation in Africa.

AFRICAN CONSOLIDATED RESOURCES

- The AIM-listed group has been in Zimbabwe since 2004. All its Zimbabwean subsidiaries, looking across the board from gold to copper and diamonds, are in the exploration phase. It is in litigation with the government over a diamond deposit near Marange, Zimbabwe.