Corporate Responsibility Report 2008 - Impala Platinum

Economic performance (continued)Ngezi, ZimplatsIndigenisation in ZimbabweEmpowerment (indigenisation) legislation in Zimbabwe requires that 51% of foreign-ownedcompanies be locally held. New legislation to this effect was passed on 2 November 2007 andwas endorsed by the President of Zimbabwe on 7 March 2008. However, the enablingregulations that will accompany the legislation have still to be passed into law.Implats has plans in place to deal with this change and has specific agreements that will be takeninto account once overall compliance with this legislation is reviewed.In this regard, on 31 May 2006, Zimplats entered into an agreement with the government ofZimbabwe in respect of the release of 36% of the group’s mineral resource base in exchange fora combination of empowerment credits of 19.5% and $51 million in cash, or equity in a jointventure, or credits of 29.25% if no cash is received. In return, the company received security oftenure in terms of a special mining lease which will allow for operations of at least 1Moz ofplatinum per year over a 50 year life-of-mine. Credits for infrastructure development and corporatesocial investment will also be received.In line with Zimbabwe’s indigenisation programme, Implats anticipates that a 15% shareholdingin Zimplats will be set aside for local ownership.Preferential procurementImplats’ procurement policy assists in identifying accredited historically disadvantaged South Africans(HDSA)/BEE suppliers to encourage their development and to ensure that they enjoy preferential status.20 Corporate Responsibility Report 08