Great Dyke Investment secures funds

Business Writer

The African Export – Import Bank (AfreximBank) has completed a due diligence study for Great Dyke Investments’ platinum project paving way for the regional financier to proceed with a US$500 million syndicated funding programme.

Great Dyke is a joint venture between Russia’s Vi Holdings and Zimbabwe’s Landela Mining Venture (Pvt) Limited and is investing US$3 billion into the operation presently under development in Darwendale.

According to an online publication, Bloomberg, Great Dyke Investments (GDI) chief executive officer Mr Alex Ivanov said AfreximBank has completed a due diligence study allowing it to proceed with a US$500 million syndicated funding programme.

“The project funding structure envisages participation of various types of equity investors as well as lenders.

“The specific stake to be acquired by potential investors would largely depend on their overall appetite for the project,” he was quoted as saying.

The publication said Mr Ivanov confirmed the completion of the due diligence programme and hinted that they expect the AfreximBank funding to be in place by year end.

Last month, GDI announced that the first phase of the new platinum mine on its Darwendale concessions is on course, with the box cut for the second portal having been opened in July.

A box cut is a single rectangular hole made on the surface as the opening of new shafts and provides a secure and safe entrance to an underground mine.

Already, over US$25 million has been spent in the development of the mines this year, with over US$110 million invested in total since exploration began.

Under the first phase, Great Dyke is expected to develop two mines, a concentrator, engineering workshops, storerooms, staff change rooms, portal offices and fuel storage.

Meanwhile, the platinum miner has announced that it was working with relevant Government departments to relocate the households that have been affected by the development of the mines and will build houses for its staff, with 4 000 people expected to be employed when the first phase is completed.

When fully operational, the two mines will produce up to 4 million tonnes of ore per annum.

Platinum is expected to contribute US$3 billion to Government’s target of a US$12 billion mining industry by 2023, with GDI a critical contributor.