Chronicle Editor
ZIMBABWE’S unlisted Kuvimba Mining House is seeking to raise US$1 billion for its gold and platinum projects, including a gold mine that could produce 150 000 ounces a year, as well as exploration.
The mining group’s chief executive officer Mr David Brown said this last Friday in an written response to Reuters.
Kuvimba was established last year and is 65 percent owned by the Government with the balance held by management through a Mauritius-based company Quorus.
Mr Brown was quoted as saying the bulk of the capital expenditure by his organisation would be spent on bringing Shamva Gold Mine, which was bought from British-based Metallon Corp in 2019, into full operation in around three years’ time.
Metallon had put Shamva mothballed in early 2019 because of mounting debts.
Zimbabwe is pursuing an ambitious plan to raise mining output and earn the country US$12 billion annually by 2023. Platinum and gold mining are seen as an anchor of the mining industry strategy, which was launched by President Mnangagwa in October 2019.
It is hoped that rising metals prices could help attract investors into mineral extraction to generate the much-needed foreign currency.
Last year, gold gained about 25 percent as global central banks and governments delivered economic stimulus, laying the ground for higher inflation and currency debasement.
The price of platinum also rose more than 10 percent.
Mr Brown said money for their capital projects would be raised from, “three sources — internally-generated cash flows, debt funding and possibly equity funding. The first two sources are the preferred route at this time”.
It is believed that Kuvimba would use part of the US$1 billion to fund developments at Darwendale platinum mine over the next 24 months.
Russia’s Vi Holding, through its JSC Afromet subsidiary jointly owns the Darwendale venture near Harare.
Kuvimba is also majority owner of listed Bindura Nickel Corporation and is seeking to acquire chrome and more gold assets. – Reuters/Business Chronicle.
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