Russians pour $53m into Great Dyke Investments

Source: Russians pour $53m into Great Dyke Investments | The Herald June 16, 2016

Takunda Maodza Assistant News Editor
RUSSIANS have so far sunk over $53 million at the Darwendale platinum mining project – a joint venture between Moscow and Harare running as Great Dyke Investments.

Zimbabwe and Russia commissioned the $3 billion platinum mining project on September 16, 2014.

President Mugabe and Russian Foreign Minister Sergey Lavrov witnessed the historic event expected to stimulate growth in various sectors of the economy.

In his report to the Zanu-PF National Consultative Assembly held in Harare recently, Finance Minister Patrick Chinamasa revealed the millions invested so far by the Russian partner.

“The Russian investors in the Great Dyke platinum project have so far invested about $53 million,” he said.

Cde Chinamasa indicated that the platinum resource at the site was of high grade.

“The quality of platinum, at 3,2g/tonne is favourable. Work on the Minerals Resources Report that will help improve transparency is currently underway. The construction of the concentrator is expected by September this year,” said Cde Chinamasa.

The Great Dyke investment is the biggest joint venture Government has entered with a foreign investor in the history of independent Zimbabwe.

Nearly a million ounces of platinum are expected to be produced annually.

The project will create employment for thousands of people.

The joint venture, Great Dyke Investments, is between the Zimbabwe Mining Development Corporation and a Russian consortium made up of three corporations, including a national bank.

The corporations are VI Holdings, Rostec, a technology partner, and Vnesheconombank, the financier.

Investment levels are expected to reach $4,2 billion over the next 10 years as there are plans to set up a refinery to promote value addition, which is a key pillar of Zim-Asset, the Government economic blueprint.

During the commissioning of the project, three agreements were signed, with the first being the inter-governmental agreement on co-operation in the implementation of the project, which was signed by Foreign Affairs Minister Simbarashe Mumbengegwi and Russian Minister of Industry and Trade Mr Denis Manturov.

Also signed was the financing agreement for Darwendale project, signed between Afromet and VB Bank and another agreement on staff training between Great Dyke Investments and Russia University of Science and Technology.

The project would be implemented in phases.