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Zimbabwe Indigenization Minister Says Gold Mining Firm's License Pulled


Indigenization Ministry Legal Adviser Psychology Mazivisa said Blanket Mine should cease operations while the government is engaging its owners, Caledonia Mining Corp. of Canada

Zimbabwean Indigenization Minister Saviour Kasukuwere was quoted Tuesday as saying he has canceled the operating license of gold producer Blanket Mine and ordered the company to halt operations. But the Ministry of Mines, which licensed the mining firm, says it has no knowledge of any such move against the Gwanda, Matabeleland South, company.

Indigenization Ministry Legal Adviser Psychology Mazivisa said Blanket did not comply with orders from the government to submit a plan providing for the transfer of a 51 percent controlling stake to indigenous Zimbabwean investors.

Mazivisa said Blanket Mine should cease operations while the government is engaging its owners, Caledonia Mining Corp. of Canada.

Sources said operations continued at the mine.

Mazivisa dismissed reports saying the ministry agreed to reinstate the license after meeting with mine executives, pending the re-submission of indigenization plans conforming to law.

Blanket Mine is one of several companies that were recently given from one to two weeks to submit new plans for indigenization or lose their licenses.

Mazivisa said the mine should obey the order to halt works.

But Mines Minister Obert Mpofu said his ministry has taken no action against Blanket.

Caledonia Mining Corp. Chief Executive Stefan Hayden, reached in Johannesburg, said Blanket is revising its plan for indigenization while continuing to operate.

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