adminSenior Business Reporter
ZVISHAVANE-BASED Mimosa Mining Company has struck a deal with an unnamed local firm to set up an $8 million assembly plant for platinum mining equipment.
Mimosa mine company executive chairman, Winston Chitando, said the deal was meant to promote local procurement by the platinum sector.
“At the moment, we’ve a proposal from a local company which I’ll not reveal who want to establish a plant at a cost of $8 million,” said Chitando. “What we’ve done is we’ve given them samples of what we require and given the undertaking that once their product meets those samples, we’ll buy from them.
“They’re working with one or two other sister companies and hopefully by the beginning of next year that $8 million investment will be taking place.”
Chitando also said Mimosa had entered into a number of partnerships with local firms to encourage domestic procurement by the platinum producer.
“Mimosa is a highly mechanised mine and two pieces of equipment, which are major components for our underground operations are LHDs and utility vehicles that transport materials and men.
“We’ve also partnered with a local company, which came into a transfer of technology arrangement with a Canadian firm for the possible manufacture or assembly of utility vehicles,” he added.
Chitando said local procurement was a step in the right direction as it goes a long way in creating employment as well as stimulating productivity across economic sectors.
Suppressed local demand is a major constraint for local firms who have to compete with cheap imports. The influx of imported products has also been blamed for the widening trade deficit and closure of some companies.
Online Reporter