Premier African Minerals Ltd. (AIM: PREM) said Tuesday it has received formal written confirmation from the Zimbabwean government regarding the transfer of state-held shares in RHA Tungsten Private Ltd., resolving a long-standing ownership deadlock that has stalled the asset’s commercial revival, Mining Zimbabwe can report.
By Rudairo Mapuranga
President Emmerson Mnangagwa approved the reallocation of the government’s 51% stake, previously held by the Ministry of Industry and Commerce through the National Indigenisation and Economic Empowerment Fund (NIEEF), to the Ministry of Mines and Mining Development under the stewardship of the Zimbabwe Mining Development Corporation (ZMDC). The London-listed developer holds the remaining 49% and acts as the project’s operator.
Decade-Long Impasse Broken
The ownership structure has been a persistent obstacle since a 2019 agreement in which NIEEF committed US$6 million in funding to restore production, a pledge the government ultimately failed to honour. Premier had previously flagged the equity arrangement as a deterrent to further capital injection, with former CEO George Roach noting in 2023 that the company was unwilling to commit more funds under the existing terms. At one point, Premier even considered relocating most of RHA’s plant equipment to its Zulu lithium project.
The presidential directive instructs ZMDC to “urgently engage” with Premier to address outstanding operational, legal and capital matters, mandating that all necessary steps to effect the transfer commence without delay.
“This removes a key area of uncertainty and provides a clearer basis for Premier to progress commercial discussions on the future of RHA Tungsten,” Managing Director Graham Hill said in the statement.
Tungsten Prices at Historic Highs
The breakthrough arrives amid a historic supply shock in the global tungsten market, triggered by China’s export curbs introduced in early 2025. APT (ammonium paratungstate) prices have surged to approximately US$3,000 per metric ton unit in ex-China spot markets, compared to a five-year average of roughly US$300. Domestic Chinese tungsten concentrate prices jumped 221% year to date, climbing from RMB142,000/ton to RMB456,000/ton.
Analysts project a global tungsten supply deficit of 23,000 to 25,000 metric tons annually through 2029. BMO Capital Markets expects tightness to persist through 2026, with markets facing another shortfall.
ZMDC Involvement Accelerates Prospects
ZMDC’s entry as the state shareholder is viewed as a catalyst for project advancement. The RHA project, located in Zimbabwe’s Kamativi tin belt, holds SAMREC-compliant inferred resources of 1.093 million tonnes at 8.7 kg/t WO₃ and indicated resources of 147,000 tonnes at 4.7 kg/t WO₃. Historical production between 1931 and 1979 yielded 1,247 tonnes of wolframite concentrate at 65% WO₃.
Hill noted that the current price environment and initial transaction interest make the timing “timely”. Premier remains committed to constructive engagement with ZMDC to advance any deal capable of delivering value through its RHA holding, while simultaneously progressing its primary Zulu lithium-tantalum project towards spodumene concentrate production.
With ownership uncertainty removed and tungsten trading at record levels, the restart of RHA Tungsten is poised to accelerate significantly.
