Chronicle Editor
Pride Mahlangu, Business Reporter
LITHIUM developer, Prospect Resources Limited, has commended Government’s professionalism and support to business saying its operations have been greatly enhanced by ongoing policy reforms.
Managing director, Mr Sam Hosack, told The Market Herald, an Australian business media outlet, that his organisation has good relations with Zimbabwe, which is good for doing business.
“Our relationship with the Government of Zimbabwe is critical to our success and we currently have a very strong relationship,” he said.
Mr Hosack said Mines and Mining Development Minister, Winston Chitando, was a competent mining industrialist who was professional and worked his way through the ranks on the basis of his skill in the mining business.
“He knows what it takes to bring investment into the country,” said Mr Hosack. “I absolutely believe that he is well rehearsed about what we are trying to do and what challenges we face and every time we encounter these issues, we do approach them. We have a very acceptive ministry.”
Given positive support from Government, including being awarded a Special Economic Zone status, Mr Hosack said his company was committed to grow its business by implementing its projects.
“We are now very focused on project finance and that’s what this project means. Having appointed Himalayan (bank) on the debt side with Afreximbank they want to put 50 percent of that debt and we know that there is strong appetite and demand for the balance of our debt,” said Mr Hosack.
“That underpins all the project funding complexities and unlocks them opening the investor off-take market.”
Recently, Prospect Resources discovered significant deposits of another rare earth mineral, caesium, at its Arcadia Lithium project, which is presently under development. As part of developing Arcadia lithium project, Prospect last year signed a power agreement with African Continental Minerals (ACM) for the supply of up to 20MW of electricity at the mine.
Last October, President Mnangagwa launched a strategic roadmap to the achievement of a US$12 billion mining industry by 2023 as Government ramps up efforts to increase the sector’s contribution to the economy by facilitating the exploitation of minerals throughout the entire value chain.
As a result, the Government has initiated several reforms to improve the business environment and attract investments which are in line with the “Zimbabwe is open for business” mantra. — @pridesinstinctz
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