PRETORIA Portland Cement, Southern Africa's biggest cement producer, has agreed to transfer 10 percent of its shareholding to the Community Share Ownership Scheme to comply with the indigenisation and empowerment laws.

Informed sources say PPC, known locally as Portland Holdings Limited, in their plan to Government, said they would also extend a cumulative 5 percent shareholding of the company to its workers.

Workers owned 1,3 percent of the company before the initiation of the empowerment plan.

Porthold recently submitted a progressive plan to Government and the two schemes would be launched during the first quarter of the year, it was disclosed.

Proceeds accruing to the Community Share Ownership Trust from its equity participation in the business would be used for the provision of socio-economic infrastructure in line with the community's priorities.

The indigenisation and empowerment laws require foreign-owned firms to sell at least 51 percent of their shareholding to indigenous people.

In terms of the Indigenisation and Economic Empowerment Act, firms are required to set aside a 5 percent stake for ordinary workers and 3 percent for management.

Government launched the Zimplats Community Share Ownership Schemes for Mhondoro-Chegutu and Zvimba communities last year.

Mimosa Mining Company also gave a 10 percent stake to Zvishavane communities as foreign-owned companies complied with indigenisation and economic empowerment requirements.

The country's second largest platinum producer also pledged US$10 million towards community development programmes in Zvishavane.Anglo-America's Unki Mine also launched the Tongogara Community Share Option Scheme last year.

Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere says all foreign and local firms are required to set up community and employee share schemes to fulfil the indigenisation requirements.

Meikles Limited and Schweppes are among non-mining companies that have successfully launched employee share option schemes.

PPC has a cement manufacturing plant located 10km out of Bulawayo.The plant has the capacity to manufacture one million tonnes of cement a year.

Cement sales in Zimbabwe are expected to remain firm. The PPC stock advanced US24c to close at US240c on the Zimbabwe Stock Exchange on Friday.