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MINING giant Lonrho is reported to have given the Zimbabwe government the green light to sell part of its shareholding in the pipeline company, Petrozim, so long as government can pay off directors fees and loans amounting to US$30 million. Lonrho owns 50% of the Mutare-Harare pipeline, and has pre-emptive rights in any proposed change in its shareholding. The government, through the National Oil Company of Zimbabwe (Noczim), controls the other half but would like to sell 50% of that portion (25% of Petrozim) to a Libyan company, Tamoil.
Industry sources have said that Lonrho had told government at a recent meeting that it was willing to divest from the pipeline so long as it was paid what was due to it. Noczim, whose creditworthiness has continued to plummet in the face of increased indebtedness, cannot raise the required sum to pay off Lonrho. Two months ago, the government is reported to have agreed with a Tamoil delegation to Zimbabwe that the total value of the pipeline was US$60 million. The remaining sticking point in the transfer of 25% of the shareholding to the Libyans was the go-ahead from Lonrho, who is divesting from Zimbabwe’s mining and manufacturing industries. The sources said that if the government fails to raise the US$30 million to pay off Lonrho, the Libyans would swoop on the shareholding to gain a controlling stake. Tamoil would like to acquire the shareholding to form a joint venture company, TamoilZimbabwe.