“Caledonia is seeking urgent clarification from the relevant ministers, and is also consulting with its legal advisors regarding appropriate legal action,” the TSX-listed firm said.
The move follows reports that Kasukuwere had rejected various foreign-owned companies plans for “indigenising” their operations in the country, or transferring at least 51% ownership to locals.
He threatened to cancel their operating licences as a result.
Caledonia said it submitted a plan in May, but had not heard from Kasukuwere since, except for a copy of a letter sent from him to the Minister of Mines and Mining Development Obert Mpofu, asking for the cancellation of the operating licence for the company’s Blanket gold mine.
“Caledonia believes the Minister for Indigenisation has exceeded his legal powers both in terms of his assessment of Caledonia’s proposal and his request to the Minister of Mines,” the company said.
The company noted that the mine was operating normally.
The news knocked 17% of Caledonia’s share price on the TSX, which fell to C$0,075 by close of trade.
Meanwhile, Caledonia Mining nearly hit year low earlier at about seven cents, after announcing that it was facing a potential dispute with the Zimbabwean government, which involves ownership over the Blanket gold mine.
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The company said it has presented an indigenisation plan, but the country’s minister responsible for the policy has asked the Mines minister to revoke Blanket’s operating licence “on the grounds that Caledonia’s proposal does not meet the legislated indigenisation requirements.” — Mining Weekly, Nasdaq.
