via ZMDC seeks copper mines partners | The Herald January 19, 2015 by Tinashe Makichi
The Zimbabwe Mining Development Corporation says there is significant potential in its copper mines and they are hunting for investors to partner with in any or all the copper mines.
ZMDC has three groups of copper mines namely; Mhangura Copper Mines, Sanyati and Lomagundi Smelting and Mining.
According to reports, two investors have so far expressed interest with the intention of investing $400 million required for the revival of the mines.
ZMDC acting general manager Mr Wilson Chinzou told the Herald Business last week that there is significant potential in the copper mines.
There have been recent reports that the mining group’s copper mines were no longer viable. “There is significant potential at the mines and hence ZMDC is seeking to resuscitate all three operations. Prospective investors are being sought to participate in a joint venture and take up equity in any or all the copper mines,” said Mr Chinzou.
ZMDC is planning to introduce a phased recovery approach towards the revival of its mines that were either shut down or placed under care and maintenance. The mining group is looking at introducing short, medium and long term phases in a bid to improve efficiencies and ramp up production at the mines.
So far ZMDC has completed a due diligence report on investors that have expressed interest in investing on mines that constitute its potfolio.
Mr Chinzou last year confirmed to the Herald Business that ZMDC has been conducting due diligence on investors and big investors have expressed immense interest in its mines.
He said they are courting investors for tin and tantalite and some interested investors have already been interviewed by the board.
“The process of securing an investment partner for Kamativi Tin Mines is underway and ZMDC’s plans for the re-opening of the mines are at an advanced stage.
“Once investment partnership has been finalised, exploration, development and mining activities will be undertaken in earnest,” said Mr Chinzou.
He said apart from realising significant returns for investors, the re-opening of Kamativi will also be historic event due to it being a significant national project.
More investors have also shown interest in the company’s diamond mining assets but that has since been put on hold pending the finalisation of the ongoing consolidation of diamond mining companies by the Government. Meanwhile last year Government gave a directive to the ZMDC to publish financial statements in bid to ensure transparency and accountability in the mining investments vehicle.
Presenting the 2015 budget statement in December last year Finance and Economic Development Minister Patrick Chinamasa told ZMDC to start publishing financial statements as way of proving a true reflection of the company performance.
He said ZMDC remains critical in championing mining investment and development in the country.