Cabinet approves mining joint venture

Source: The Herald – Breaking news.

Cabinet approves mining joint venture 
The joint venture seeks to prospect and explore for lithium and pegmatite minerals on 52 600 hectares in Goromonzi, Mashonaland East Province

Mukudzei Chingwere

Herald Reporter

The proposed partnership between the Mining Promotion Corporation and Prospect Brooke Resources (Pvt) Ltd has been approved by Cabinet to conduct exploration and mine development in Goromonzi, which will see Government getting a guaranteed 30 percent shareholding.

Speaking after yesterday’s Cabinet meeting, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, said the proposal was presented by Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube.

The joint venture agreement is in line with the policy on public-private partnerships where the Government can work with private enterprise, usually committing assets against the investment funds required to use those assets. In this case it is an exclusive prospecting order over 52 600ha of Goromonzi.

“Cabinet considered and approved the proposed partnership between the Mining Promotion Corporation and Prospect Brooke Resources (Pvt) Ltd to conduct exploration and mine development over Arcturus Exclusive Prospecting order number 1842,” said Dr Muswere.

“The joint venture seeks to prospect and explore for lithium and pegmatite minerals on 52 600 hectares in Goromonzi, Mashonaland East Province. Prospect Brooke Resources is a Zimbabwean-based private company incorporated in terms of the Companies and Other Business Entities Act.

“In terms of the agreement, a special purpose vehicle, the MPC JV, will be established in which Prospect Brooke Resources shall hold 70 percent shareholding and the Mining Promotion Corporation 30 percent at the exploration stage.

“Prospect Brooke Resources will mobilise the entire amount required for exploration, and Mining Promotion Corporation is not expected to make any financial contribution towards this stage.”

Prospect Brooke Resources had demonstrated technical and financial capacity to undertake the project, and exploration was expected to start once the joint venture agreement was signed.

Prospecting and exploration were estimated to take not more than five years from the commencement date.

Dr Muswere said the joint venture shareholding structure would be renegotiated after the exploration stage if the project proceeds to mine development and mining starts.

The agreement marks yet another milestone in the country’s mining sector, which continues to attract more investors.

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