ZMDC can revive SMM: Chimanikire

without engaging a foreign partner, Mines and Mining Development Deputy Minister Gift Chimanikire has said.
He said the company will revive operations alone using funds generated from its other investment portfolios.
Government officially handed over the administration of the SMM Holdings to the Mines and Mining Development ministry last month.
The company was under the administration of the Justice and Legal Affairs ministry and the hand-over take-over is still underway.
Deputy Minister Chimanikire yesterday said officials from the ministry visited the Midlands-based mines recently for an on the spot assessment. He said the officials were convinced that the ZMDC was capable of turning around the fortunes of the mines.
“Officials from the ministry, including the permanent secretary, visited the mines for an on the spot assessment of equipment. They think the ZMDC is capable of reviving the mines without engaging a foreign or local partner,” Deputy Minister Chimanikire said.
“We are doing it alone. That is the preferred option. We are convinced sufficient capital can be raised.”
The deputy minister said funds from the ZMDC’s viable projects like joint ventures at Chiadzwa and gold mines at Jena and Sabi could be channelled towards the revival of SMM Holdings.
He said white asbestos was in high demand in Eastern Europe, making prospects of reviving the once vibrant mines brighter.
Deputy Minister Chimanikire visited the mines in March to assess the situation.
Last month, Mines and Mining Development Minister Obert Mpofu pledged to revive operations at the mines. He said the hand-over of SMM Holdings to his ministry was long over due.
Minister Mpofu said his ministry had assigned officials from the ZMDC to address issues regarding the opening of the mines.
SMM Holdings employed more than 4 000 workers and had virtually collapsed. Workers had gone for two years without salaries and the SMM Holdings owed US$4 million to the Zvishavane Town Council.
In 2004, Government placed the SMM Holdings – then owned by Mr Mutumwa Mawere – under reconstruction following allegations of financial irregularities.
The reconstruction exercise failed to yield positive results as problems continued to mount threatening the survival of the mines.
Efforts to lure a foreign investor appeared difficult with Mr Mawere often cited as an impediment.
Mr Mawere is battling to reclaim ownership of the mines.