Pretoria Portland Cement, southern Africa’s biggest cement maker, said it will consider selling part of its stake in its Zimbabwe unit to comply with the indigenisation and empowerment law.
The Government published regulations early this year which seek to compel foreign-owned companies with value exceeding US$500 000 to sell at least 51 percent to indigenous people.
Chief executive Mr Paul Stuiver told Reuters that the group was considering selling a stake in PPC Zimbabwe to black investors to comply with indigenisation and empowerment laws but only if the transaction made commercial sense.
On the other hand, Chamber of Mines president Mr Victor Gapare said the mining industry would give priority to local suppliers of mining consumables to support the Government’ indigenisation and economic empowerment initiative. He, however, said local procurement should contribute to part of the empowerment threshold of 51 percent.
Mr Gapare was addressing a joint suppliers and purchases committee workshop yesterday, aimed at strengthening between the mining firms and local suppliers.
The workshop was held under the theme "Empowerment through local procurement in the mining sector".
"The Government is currently in the process of implementing the indigenisation and economic empowerment initiative.
"The Chamber strongly believes indigenisation and economic empowerment can be achieved through local procurement.
"As part of the empowerment strategy, the Chamber of Mines has proposed that local procurement could be counted as equity equivalent and contribute to the global empowerment threshold of 51 percent," said Mr Gapare.
During the workshop, five mining houses presented their procurement requirements and processes.
Mr Gapare said the mining industry spent US$150 million last year on local supplies and the figure is expected to double this year.
A recent survey by the Chamber of Mines revealed that the local mining sector, which is expected to grow by 44 percent next year, requires between US$3 billion and US$5 billion over the next five years to operate at optimal levels.
"Zimbabwean supplies should gear themselves to be in the pole position to get the bulk of this spending," added Mr Gapare.
He said it was previously fashionable for mining companies to reject products by local supplies, as they did not meet minimum standards but this had since changed.
"Today, this excuse is no longer acceptable, local procurement is the way to go," said Mr Gapare.
He said the chamber was eager to see more people being empowered through various supply contracts from mining companies.
He, however, reminded local suppliers that supporting them did not mean accepting poor quality products and inflated prices.
"This is not about value transfer, its about mutual benefit. We are all in business to make money and if your products makes the mine go broke, the mine is not going to buy from you."
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