Impala Platinum and Aquarius Platinum, which jointly own the Mimosa mine in Zimbabwe, are at odds over a costly expansion plan apparently because of the difficulties in doing business in the country. Company officials said the expansion would cost about $70-million (about R827-million) and was likely to be done in two or three phases.The two South African platinum groups have an equal share in Mimosa, a 111, 000-ounce platinum group metals producer, but are under pressure from the Zimbabwean government to reduce their joint shareholding to less than 50% in line with contentious empowerment policies. The government is also pressuring platinum producers to refine the metal in the country.A source has told Business Times that Implats and Aquarius do not agree on whether to proceed with an expansion .The two producers confirmed recently that a pre-feasibility study on the expansion had been completed, but did not provide details. They said the board of Mimosa would recommend the best option to shareholders.story_article_left1But the source said: "There is no consensus on whether to proceed with expansion; Implats wants certainty on its investments while Aquarius is of the view the expansion should proceed. This has resulted in the plan for a second shaft being shelved."Implats was sceptical of the investment climate in Zimbabwe, the source said.Implats said this week a conducive environment would determine the investors' decision.Implats spokesman Johan Theron said: "There is no aversion to further investment at Mimosa."When the bankable feasibility study concludes, the board and shareholders will make a decision on how to proceed considering the inherent cost and affordability and embedded risk and benefit."Aquarius spokeswoman Charmane Russell denied there was disagreement between Aquarius and Implats over the expansion. The Mimosa board would make the final decision.Winston Chitando, executive chairman at Mimosa, said: "The pre-feasibility study relating to the expansion has been completed and the feasibility study is currently under way."story_article_right2Aquarius said it was committed to continuing with expansion of Mimosa, but it was important to have "fiscal certainty" in Zimbabwe.The two companies have sunk $123-million in capital investment into the mine in the past three years, but could not say how much they had provisioned for the next three years.Mining executives in Zimbabwe said tax and other fees were a burden and were stretching profitability prospects for companies.Bruce Williamson, the Africa resource fund manager for Imara Africa, said Mimosa was more important to Aquarius than to Implats.Other investment experts said the investment and tax policy situation was uncertain and posed high risks for investors. They said several mining companies were dragging their feet in approving expansion plans and new programmes.A top cabinet minister in Zimbabwe, who declined to be named, said last week that the government would act against companies that were indecisive about increasing production...