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Tinashe Makichi Business Reporter
ZIMBABWE Stock Exchange-listed Meikles Limited is looking at three and possibly four gold mining companies with a view of getting into partnership with or taking over their assets, a company official has said. Meikles Limited went into a mining joint venture with a Mauritius-based company Afghan Africa Holdings Limited in which Meikles owns 51 percent while AAHL owns 49 percent.
The Afghan company is expected to invest up to US$500 million as the group spreads its operations into mining.
In an interview with the Herald Business, Meikles executive director Mr Mark Wood said the company is looking at securing partnerships, with the first mining deal with a local mining company expected to be sealed next week.
“We are close to sealing a mining deal with a local mining company as we hope to develop the local mining industry. AAHL would offer vast technical support and a strong financial backing which is a fundamental part in reviving the mining industry,” he said.
“We are currently looking at three or four gold mining companies with a view of getting into partnerships, as we are set to spread out tentacles in the mining business,” he said
He said the new company would be called Meikles Centar Mining Limited which will be mining gold, lithium, chrome and tungsten.
Mr Wood added that they have completed all the regulatory requirements, with all the projects scheduled to start early next month.
“The company is going to carry out prospective activities in Zimbabwe and we would be looking at mining companies that are on the verge of closing down or the those that are experiencing production deficits.
“We have since concluded our negotiations with the Zimbabwe Investment Authority as well as the Competition and Tariff Commission, and we are happy to announce that we received all the necessary clearance to start our operations.” he said.
Mr Wood said a lot of money would be injected and each project would be funded individually and new capital financial injection would be introduced as required.
“We need to come up with structures that accommodate such kind of investments and massive employment is coming up once we start our operations,” Mr Wood said.
Mr Wood said the country has a lot of struggling mines while some are still operating on a care and maintenance basis and the coming in of the partnership deal is expected to revive the industry.
Meikles Limited wanted to venture into diamond mining through the acquisition of Rio Tinto (UK)’s 78- percent stake in Murowa Diamonds, but that has been reversed after Rio Tinto decided to stop the deal.
Mr Wood said they would be concluding a deal with a local mining company next week but could not divulge the name of the company. He said details would be revealed once the deal is sealed.
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