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Oliver Kazunga Senior Business Reporter
MEIKLES Limited’s mining arm, Meikles Centar Mining (MCM) is set to spend more than $100 million in a chrome mining project along the Great Dyke following approval of the proposal by government.
In a statement accompanying the group’s financial results for the year ending March 31, 2014, Meikles Limited chairman John Moxon said their mining division had purchased 75 percent equity in a company that owns chrome claims along the Great Dyke.
“Proposals have been submitted to the Ministry of Mines and Mining Development relating to a significant chrome project, which include construction of a smelter to beneficiate both lumpy and alluvial ore. The project will cost in excess of $100 million,” he said.
He said the group had carried out limited exploration on an iron ore claim and the results were positive adding that further tests were required to determine the full extent and quality of ore reserves.
In March this year, Meikles said its mining division, which is looking forward to venturing into gold mining in Matabeleland, had signed a partnership agreement with a local firm DGL Investments (Imviga) intending to buy 51 percent equity in the company.
DGL Investments is a subsidiary of emerging gold producer, Duration Gold Limited based in Matabeleland and majority owned by British-based Clarity Capital.
Commenting on progress to venture into gold operations, Moxon said: “MCM is currently in the process of acquiring 51 percent shareholding in a group of gold mines in the Matabeleland area for a consideration of $3 million. We wait regulatory approval for the transaction to be concluded.”
He said the group looks forward to its strategic partners to provide finance and mining skills.
Meanwhile, the group’s revenues for the period under review were 1,8 percent below those achieved in the prior year due to lower turnovers in its retail and agricultural sectors.
Operating costs were 1,7 percent ahead of those incurred in the prior year.
“Finance costs increased. Borrowings increased to fund expansion and refurbishments in the supermarkets, refurbishment of the hotels and substantial plantation development,” said Moxon.
He revealed that funds on deposit with the Reserve Bank of Zimbabwe had increased to $90,8 million as a result of interest negotiations.
“We are in receipt of Treasury Bills of $49,6 million and have been advised by relevant authorities that upon completion of their required processes, Treasury Bills of similar terms to those already in our possession will be issued for the balance,” he said.
On the outlook, Moxon said they forecast that the economic challenges would be overcome and once finance issues between Meikles and RBZ were achieved that would also put the group in a strong financial position consolidating its participation in the economy.
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