The Chief Executive Officer of Impala Platinum Holdings (Implats), Nico Muller, says policy uncertainty remains the biggest challenge for mining investors operating in Zimbabwe, warning that frequent regulatory shifts have raised the company’s perception of risk.
Implats is the holding company of Zimplats, Zimbabwe’s largest platinum producer, which is currently advancing a US$1.8 billion investment programme aimed at expanding mining operations and increasing local processing and beneficiation capacity.
Speaking on the company’s operations in the country, Muller said Implats has operated in Zimbabwe for over 25 years, navigating various economic challenges and maintaining strong partnerships with government, employees and local communities.
He noted that difficult operating conditions in Zimbabwe were not new to the company.
ACTUALITY – MULLER
“There were times in the past when employees were paid not in money but in groceries and other goods. So difficulty in Zimbabwe is not new to us,” Muller said.
However, he said the main concern for investors now is not necessarily the difficult operating environment, but the unpredictability of policies.
“The big issue in Zimbabwe is the uncertainty of policy and the shifts that happen from time to time. If it’s difficult that’s one thing, but if you are never certain what the rules are going to be in the next year, that is a different kettle of fish,” he said.
Muller added that Implats’ perception of risk in Zimbabwe has materially increased over the past year, partly due to policy changes and delays in accessing funds owed to Zimplats under Zimbabwe’s foreign currency retention framework.
Despite the challenges, he said the company continues to engage with both the Zimbabwean and South African governments to address the concerns and create a more stable investment environment.
Muller expressed confidence that the discussions would lead to a positive outcome, noting that similar challenges in the past had been resolved through dialogue.
