Impala Platinum (JSE:IMP), the world's No. 2 producer of the metal, said on Wednesday it had resolved a long-standing legal dispute with Zimbabwe by agreeing to give up almost half of its mining land to the government.
In exchange, the Zimbabwean government has given Zimplats two leases valid for the life of its operations.The South African miner, known as Implats, said that in exchange for releasing 23,903 hectares of its claims, the Zimbabwean government had given it two leases valid for the life of its operations. They replace a special mining lease it was granted earlier, which was due for renewal in August 2019.
The agreement leaves Impala's local subsidiary Zimplats owning two separate pieces of ground: south of the granted land comprising its Ngezi operations, and another package on which the Hartley mining area and Selous Metallurgical Complex is hosted.
Zimplats said the move would support the Zimbabwean government's efforts to enable participation by other investors in the platinum mining industry.
Implats owns 87% of Zimplats, which is Zimbabwe's biggest platinum miner.
Investors reacted positively to the news, with the stock closing 5.24% higher Wednesday at 2,168 Rands.