ZMDC partners local investor to resuscitate gold mines
The Zimbabwe Mining Development Corporation (ZMDC) has signed a joint venture agreement with an unnamed local investor to resuscitate its defunct gold mines in the country.
Benard Rinomhota
ZMDC is a parastatal with diversified interest in the mining sector and in recent years the corporation has been scouting for local and foreign investors intending to reopen its mining operations that are lying idle.
The mines that ceased operations include those in graphite, copper, tin, emerald, and platinum. They closed due to several reasons among them a huge debt overhang.
In an interview, Mines and Mining Development Deputy Minister Engineer Polite Kambamura said:
“They (ZMDC) have signed a joint venture agreement with one local investor who will be coming on the ground soon mainly to resuscitate the gold assets.
“The investor will be announced in due course.”
Recently, it was reported in some sections of the media that a prominent Harare business tycoon with interests in mining and oil, Mr. Kudakwashe Tagwirei was angling to buy four gold mines owned by the government through ZMDC.
The assets comprise Sabi, Golden Kopje, Elvington, and Jena gold mines.
ZMDC owns over 20 mines dotted across the country.
Eng Kambamura said the mining group was still to secure investors for its other idle operations with interest in copper, graphite…
“They are yet to find investors for other assets. The investors being sought are a combination of local and foreign,” he said.
The revitalisation of ZMDC mines across the country is on Government’s top priority list as it angles to achieve a US$12 billion industry by 2023.
So far, Zimbabwe’s mining sector is the largest foreign currency earner, accounting for 70 percent of export receipts.
And under the US$12 billion mining roadmap, gold is expected to contribute US$4 billion, platinum US$3 billion while chrome, iron, steel, diamonds, and coal will contribute US$1 billion. Lithium is expected to contribute about US$500 million while other minerals will contribute US$1,5 billion.
This article first appeared in the 15 June issue of Mining Newsweek Magazine