Felix Njini, Loni Prinsloo and Godfrey Marawanyika
·2 mins read
(Bloomberg) — The owners of a Russian-backed project to build Zimbabwe’s biggest platinum mine have held talks to sell a stake of at least 20% to Impala Platinum Holdings Ltd., according to people familiar with the matter.
Great Dyke Investments views Impala as an attractive partner partly because the Johannesburg-based company also has the capacity to process ore from the mine, said the people, who asked not to be identified as the details aren’t public. That would give Great Dyke an offtake agreement to help it to raise financing to complete the mine, they said.
Great Dyke — owned jointly by tycoon Vitaliy Machitski’s Vi Holding and undisclosed Zimbabwean investors — is in talks with a number of potential equity partners, Chairman David Brown said in an interview, without being more specific.
Great Dyke’s Darwendale project has the potential to become one of the world’s biggest platinum mines and its development is central to the Zimbabwean government’s plans to reboot its collapsing economy.
“The size of the stake we plan to sell is subject to negotiations,” said Brown, a former chief executive officer of Impala. He declined to comment further.
Impala said it isn’t in formal negotiations with Great Dyke.
Impala already operates mines in Zimbabwe. One stumbling block to a deal is Great Dyke’s valuation of the project, the people familiar said. Great Dyke would consider selling a bigger stake, but for the moment the existing shareholders want to retain a majority holding, they said.
Zimbabwe has the world’s third-largest platinum group metal reserves after South Africa and Russia. Former president Robert Mugabe handed the Darwendale concession to Russian investors in 2006 after the government repossessed land from a local unit of Impala.
While Impala remains cautious about committing to huge spending in Zimbabwe in the short term, it has a “great future” in the country, CEO Nico Muller said Wednesday during a virtual mining conference. He didn’t comment on specific projects.
“The potential offers the kind of future we think of,” Muller said. “Lower cost, mechanized assets and in spite of socio-economic challenges in the country, we don’t have the same infrastructure challenges that we have in South Africa.”
Great Dyke hopes to secure about $500 million in initial capital by the end of the year and the mine could be commissioned in 2023, CEO Aleksandr Ivanov said last month. It could produce more than 860,000 of PGMs a year at full production. Ivanov declined comment when spoken to by Bloomberg on Tuesday.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
When you consent, your personal data will be used for personalization of ads
COMMENTS