Implats Aims to Discuss Forex Policies with Zimbabwe Government

Impala Platinum (Implats) is requesting a meeting with Zimbabwe President Emmerson Mnangagwa to discuss the foreign exchange retention rules affecting their investment. The Reserve Bank of Zimbabwe has increased the dollar receipts it retains, causing economic strain. CEO Nico Muller and CFO Meroonisha Kerber highlighted the need for increased forex access and discussed operational adjustments in response to market volatility.

Impala Platinum (Implats) is actively seeking a meeting with Zimbabwe’s President Emmerson Mnangagwa to address concerns regarding foreign exchange retention rules, which complicate investment opportunities within the nation. Recently, the Reserve Bank of Zimbabwe adjusted the percentage of dollar receipts retained by the government to 70%, raising concerns about the increasing costs associated with foreign exchange transactions at local rates.

Nico Muller, the CEO of Implats, emphasized the necessity of discussing improved access to foreign exchange with the Zimbabwean government, expressing, “It is something that needs to be discussed between our company and the government.”

Meroonisha Kerber, Chief Financial Officer of Implats, informed that the company’s 85% owned arm, Zimplats, had to borrow funds to finance capital goods purchases due to insufficient dollar receipts. She noted, “From an efficiency point of view it makes sense to borrow there…because all our operations have to fund all of their own capital.”

Furthermore, Implats is currently reviewing its portfolio in response to potential declines in platinum group metal prices. Muller pointed out that the Canadian mine, Lac des Iles (Impala Canada), and the Marula asset are among the most at risk. The latter has just two years of reserves remaining without the previously suspended phase two investment.

In regard to operational cuts, Muller stated that most cost reductions, including job losses, have already occurred, suggesting limited further reduction in corporate overheads. He indicated that the company is now focusing on crucial portfolio decisions, noting that some shafts in the Rustenburg division are under significant financial pressure.

Despite these challenges, Implats remains committed to investing in its Zimplats operations, with Muller asserting, “We have always been positive about our investment orientation with regards to Zimbabwe.” He recognizes the Great Dyke as a valuable resource and maintains a long-standing, constructive relationship with the government.

In summary, Impala Platinum’s engagement with the Zimbabwean government highlights the challenges posed by stringent foreign exchange rules that hinder investment. The company’s leadership is proactive in seeking dialogue to improve conditions for operations, as they navigate economic pressures and evaluate their asset portfolio. The long-term commitment to Zimbabwe remains despite the difficulties encountered, showcasing a collaborative approach with the local government.

Original Source: www.miningmx.com