Chegutu community sues Zimplats over 10% shares al...

Chegutu community sues Zimplats over 10% shares allotment

Zimplats numerous CSR programmes include donation of Bonsmara and Tuli bulls to the community.

Zim Now Writer

Chegutu Rural Council is spearheading a community lawsuit against Zimplats over a 10 percent shares allotment agreement made almost 11 years ago.

“The claim is for an order declaring that Zimplats is entitled to subscribe to and obliged to allot to the Trust ordinary shares in the share capital of Zimplats constituting 10% of the issued share capital in terms of the Zimplats Mhondoro Ngezi Chegutu Zvimba Community Share Ownership Trust,” read the claim filed at the High Court.

Chegutu Rural District Council chairperson Tatenda Gwinji is named as the representative of the CSOT. The agreement was made on 29 December 2011.

The CSOT wants Zimplats which was served on Friday, to comply with the agreement within 14 days.

Zimplats is a subsidiary of Implats and in October this year CEO Nico Muller stated that the organisation’s outlook places Zimbabwe as more hospitable business environment than SA.

https://zimbabwenow.co.zw/articles/536/muller-rates-zimbabwe-better-for-mining-operations-than-sa

Zimplats, operates mines in Ngezi and has processing plants in Selous and Ngezi.

The mandatory 10 percent community ownership allocation meant to ensure that the extractive industry contributes sustainably to the development of the areas that it is operational in.

This follows international and continental guidelines from International Council on Mining and Metals and African Union Mining Vision.

CSR programmes are not a legal replacement of the share allocation.