New Dawn Mining Corporation is holding talks with the government of Zimbabwe concerning a new law that needs it to cede or sell 51% of its shares to black Zimbabweans.
This planned legislation is part of the government’s indigenization plans for businesses in the nation. The Toronto listed company said that it was looking for partners in the Zimbabwean owned investment companies and pension funds.
The company currently owns three gold mining firms in Zimbabwe. It took over Dalny, Venice and Golden Quarry mines in June 2010 from Central African Gold. It already owns Angelus and Turk mines. It is also thinking of getting a Harare based listing on the Zimbabwean Stock Exchange. This will enable them to establish an employee ownership scheme.
Its subsidiaries Casmyn Mining Zimbabwe (Private) Limited, Falcon Gold Zimbabwe Limited and Olympus Mines Limited, are all non-indigenous companies for purposes of the Indigenization and Economic Empowerment Act. The views and options open to the company were made known on its website.
The deadline of May 9, 2011 is fast approaching for miners to show how they will comply with the Indigenization and Empowerment Act. As per the new law the foreign owned companies and those owned by white Zimbabweans which have assets worth $500,000 or more will have to dispose of 51% share to black Zimbabweans.
The company management is worried about the uncertainty surrounding the bill and is wondering if its efforts to achieve compliance will be successful.