info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Photo by zmdc.co.zw
A Chinese investor, Beijing Pinchang, is set to inject $100 million into Kamativi Tin Mine in Matabeleland North province in a deal that will see the company and the Zimbabwe Mining Development Corporation (ZMDC) jointly owning the entity, a cabinet Minister has said.The mine, which has been closed for 21 years, has around 40 million tonnes of open cast reserves and is considered one of the best tin mines in the world.
Zimbabwe Mining Development Corporation (ZMDC) was established to create a vibrant and versatile mining power house necessary to transform Zimbabwe’s mineral wealth to the world class standards and to engage in prospecting, exploration, mining and mineral beneficiation in a sustainable and viable manner for the benefit of the stakeholders.
Mines and Mining Development Minister Walter Chidhakwa told Parliament that Beijing Pinchang agreed to a deal which would see it injecting $100 million for a 49 percent stake in the joint venture company for the tin mine.
Minister Chidhakwa said at the moment a team of six geologists and metallurgists were on the ground carrying out valuations of other minerals found along with tin.
"When Kamativi closed they were only mining tin which also had other minerals such as tantalite which are now significant minerals on the market now. Therefore any attempt to re-open Kamativi without looking at the seven other minerals believed to be there is disadvantaging the country," he said.
In terms of the agreement, the mine would be jointly managed in line with the shareholding structure.Initially, the ZMDC had projected that at least $50 million was needed to restart operations at the mine. Minister Chidhakwa said though the ZMDC had the strongest balance sheet in terms of asset base and concessions compared to all mining companies in Zimbabwe, it had failed the nation due to under performance.
He said the ZMDC had several mining companies that were idle and these include Shabani Mashava, Elvington, Jena and Sabi Mines. "ZMDC has failed to perform as expected of it. It has failed to complement its role towards the development of the economy," he said. He added, "If ZMDC was performing, it would have been the biggest company in this country."
Beijing Pingchang Investments invested over $100 million into the mine that stopped operations in 1994 with indications that it has reserves amounting to 100 million tonnes. The Chinese company takes up 49 percent while Government through its mining arm, ZMDC retains the controlling stake of 51 percent in line with the country’s indigenisation policy.
