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Business Reporter
THE Zimbabwe Mining Development Corporation (ZMDC) and Chinese firm, China Beijing Pinchang have completed due-diligence negotiations paving the way for the long-awaited re-opening of Kamativi Tin Mine, which closed over two decades ago. Mines and Mining Development Deputy Minister Fred Moyo confirmed that the deal between the two parties was officially completed last month.
“Officials from ZMDC met their Chinese counterparts in China to complete issues to do with due-diligence but I haven’t seen the report yet . . . I will be visiting Kamativi soon to meet traditional leaders there to enlighten them about the issue,” said Deputy Minister Moyo.
He, however, could not be drawn to divulge when work would start at the tin mine, which was shut down 21 years ago on the back of unviable commodity prices. The price depression emanated from the devastating tin price crash in 1985 when the tin price fell overnight from about $18 000 per tonne to less than $3 000.
At the moment the international prices of tin are hovering between $15 000 and $22 000 per tonne.
The closure of the mine resulted in the loss of many jobs and opportunities for surrounding communities. ZMDC signed a $102 million Joint Venture Arrangement with Beijing Pinchang Investments in September to resuscitate operations at the mine.
According to the ZMDC, between $35 million and $50 million is needed to resuscitate operations at Kamativi. Under the deal, the Asian investor will assume a 49 percent stake while the ZMDC takes 51 percent in line with Zimbabwe’s indigenisation policy. Apart from tin, the mine has other mineable minerals which include lithium, tantalite, beryl, copper and beryllium.
Hwange District Administrator Mr Tapera Mugoriya said the opening of Kamativi Tin Mine would go a long way in creating employment opportunities in the district where a majority of the people are employed by coal mines in the area while others are in the tourism sector.
“The opening of the mine would go a long way in reducing employment figures in the district. It will also be a boost in improving activity as the area was now dormant,” he said.
Hwange Rural District Council chairperson Ms Siphiwe Mapfuwa said the opening of the mine would improve livelihoods of people in the area most of whom are living under impoverished conditions due to lack of jobs.
“The re-opening of Kamativi Tin Mine comes as a welcome relief in terms of employment and hopefully this time it’s not a fluke because such talk has been said over the years that the mine will be opened.
“If it re-opens definitely it will improve the livelihood of people in the district most of whom have been living under squalid conditions since its closure due to lack of employment. Most of the houses, which were used by some of the workers, are still intact though some have been vandalised by some unruly elements,” she said.
Hwange RDC chief executive officer Mr Phindile Ncube said reviving the mine would play a significant part in improving the local authority’s coffers through remittance of levies.
“What is generally expected from such a development as the norm is that it should transform the livelihoods of the general populace of the Hwange community in terms of job creation and at the uttermost it will improve the fiscus of the local authority,” he said.
Tin has many uses. It takes a high polish and is used to coat other metals to prevent corrosion, such as in cans, which are made of tin-coated steel. Alloys of tin are important, such as soft solder, pewter, bronze and phosphor bronze.
Online Reporter