RioZim owners announce new 78% Shareholder to aid resuscitation
Sperrgebiet Diamond Mining (SDM) this week announced its majority equity investment by Global Emerging Markets Group (GEM), the miner said.
The mining company highlighted this among other investments adding that the resources division of the GEM Group holds mining and energy assets in Zimbabwe.
“The vision is to expand its footprint in these two sectors in southern Africa and the larger continent in the longer term. Their current African investments include a majority shareholding in RioZim which is one of the biggest gold producers in Zimbabwe,” the miner said in a statement on Monday.
SDM reported that additional capital investment has been solicited by the shareholders, culminating in a share sale transaction between the Namibian shareholders being the founders, Lewcor Holdings and its minority partners, David Sheehama, MSF Commercials, and the GEM Group.
“The equity transaction was well received by the government of Namibia and received approval from the Namibian Competition Commission and the Minister of Mines and Energy. The deal was finalised on May 20, 2022, with GEM group subsidiary obtaining 78% of the shareholding and Namibian shareholders retaining 22% inclusive of an Employees Trust of 2%.”
GEM Group’s current African investments include a majority shareholding in RioZim which is one of the biggest gold producers in Zimbabwe, the miner said.
“RZM Murowa which is one of the world’s leading diamond producers is an affiliate of RioZim. The company also owns a base metal refinery and an energy business unit focused on generating green energy and minimising the carbon footprint of its mining operations,” the miner said, adding that the group wishes to expand this portion of its business with its newly acquired mining asset in Namibia.”
SDM is a Namibian company that owns a combination of four onshore and offshore diamond mining licences in the restricted diamond areas around Lüderitz. Its mainland-based operation is located at Elizabeth Bay 40 km south of Lüderitz.
SDM acquired the mining asset from Namdeb Diamond Corporation in October 2020 and invested in the project through an environmental clean-up campaign and the care and maintenance of the existing main processing plant to recommission it.
“In Q4 2022, the company is gearing up to start-up operations at the historic production levels under Namdeb. The immediate next aim is to double production by mid-2023 by implementing an infield pre-treatment facility as the second phase. The company is amidst an aggressive recruitment drive, aiming to employ up to 180 people by the end of 2022, with a further increase during phase two,” the miner said.
Source: Economist