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April 2011
2011-04-02
Tinker Mining's position in the aftermath of the last Regulation....
Indigensation & Tinker Mining
The Indigenisation Regulation issued on 25th March 2011 impacts on non indigenous mining companies in Zimbabwe. Tinker Mining (Private) Limited, the sole and wholly owned subsidiary of Itinerant Resources plc, is the registered owner of all Zimbabwean assets.
The businesses affected by the Regulation were those with a net asset value of or above one United States dollar. Since the business of Tinker Mining (it has no subsidiary or associated companies) are in exploration phase financed by loans from its parent company the value of Tinker Mining’s net assets are less than one United States dollar.
Tinker Mining’s indigenisation plans, designed to address the requirements of the legislation, include:
- Engaging directly with indigenous capital partners in Zimbabwe namely pension funds and investment firms that qualify as indigenous investors. As Tinker Mining moves into small scale production local funding can augment a general fund raising to meet capital investment required.
- The establishment of employee and community share ownership plans for the benefit of indigenous Zimbabweans that are intended to provide the opportunity for broad based participation by indigenous Zimbabweans.
- Tinker Mining’s strategy will be to acquire properties in a joint venture arrangement with indigenous partners.
Tinker Mining will assemble a viable indigenisation plan that receives the support and approval of the Government of Zimbabwe. The timeframe under the March 2011 regulation for compliance by non indigenous mining companies is 25th September 2011.
There can be no assurances that Tinker Mining will be successful in its efforts to comply with the indigenisation laws and regulations in force from time to time.