Pages

Wednesday, June 25, 2008

Anglo American Corporation Announces A New $400 Million Investment In Zimbabwe

Anglo defends Zim investment
Jun 25 2008 2:37PM
Sherilee Bridge
Johannesburg - Resources giant Anglo American on Wednesday said it was "deeply concerned" about the current political situation in Zimbabwe, and condemned the violence and human rights abuses that are taking place.

This response comes after UK media reports that Anglo planned to make what is believed to be the largest foreign investment in Zimbabwe to date despite the British government's pressure on companies to withdraw from the country.

According to UK daily The Times, Anglo's decision to invest $400m (R3.2bn) in the Unki platinum mine in Zimbabwe has outraged certain shareholders and politicians.

"The foreign office was investigating tonight whether the company's investment breached sanctions against Zimbabwe. Anglo insisted that its involvement in the country did not break the law," the newspaper reported.

But Anglo said it was in full compliance with all relevant national and international laws relating to its activities in Zimbabwe.

Anglo American has been an investor in Zimbabwe for 60 years and the Unki platinum project has been in development since 2003.

Regarded as a long-term investment, the mine is yet to start production and is not expected to generate revenues for some years.

"Anglo American is monitoring the situation in Zimbabwe very closely and is reviewing all options surrounding the development of the project," the company said in a statement.

Anglo said it had been made clear that if it ceased to develop this project, the government of Zimbabwe would assume control of the potential mine.

"Anglo American has a clear responsibility to protect the well-being of its more than 650 employees and contractors, as well as their families and all those who depend indirectly on the activity around the project, all of whose livelihoods would be jeopardised should the company withdraw from Zimbabwe," Anglo stressed.

It added that the responsible development of the Unki mine would create a long-term viable business that would be important to the economic future of Zimbabwe for years to come.

The company hopes Unki will be producing platinum by 2010.

Zimbabwe is rich in mineral resources and has the world's second-largest deposits of platinum, but most large miners are avoiding the country or have put their investments on hold.

The Times reported that Rio Tinto, the world's second-largest miner, with a diamond mine in Zimbabwe, said it would put its investment on hold until after president Robert Mugabe steps down.

- I-Net Bridge

No comments: