Zimplats meets part of empowerment obligations

ZIMBABWE Platinum Mines has met part of its empowerment obligations after transferring 10 percent shareholding to its employees, the company said yesterday.

In a statement, the company said the equity valued at $95 million had been vendor financed through a loan advanced by Zimbabwe Platinum Mines.

The ESOT was established in Zimbabwe and its beneficiaries are the permanent employees, excluding the executive directors and company secretary.

“Zimplats wishes to announce that its operating subsidiary, Zimbabwe Platinum Mines (Private) Limited, has concluded a transaction in terms of which it has issued a 10 percent equity stake to the Zimplats Employee Share Ownership Trust,” Zimplats said.

“The subscription price payable by the ESOT for the 10 percent equity stake is $95 million which has been vendor financed through a loan advanced by the operating subsidiary to the ESOT. The ESOT will repay the loan from dividends declared by the operating subsidiary.

Zimbabwe Platinum Mines is the country’s largest platinum miner and has invested about $5 billion into the economy since 2002.

The ESOT will be beneficial to Zimplats in that it will secure and retain key skills and experience among the operating subsidiary’s employees to ensure continued long-term operational and production success.