adminHarare Bureau
ZIMBABWE Mining Development Corporation (ZMDC) is courting Chinese investors to partner in resuscitating its Jena and Sabi gold mines at a cost of $30 million.
Sabi and Jena Mines are currently operating while the other gold mine, Elvington is dormant and still maintains project status. ZMDC public relations manager Charity Tambandini yesterday said the two gold mines require working capital to boost production capacity and viability.
“ZMDC is scouting locally and globally for funding to transform these gold mines into high producers at low production costs. We have since directed our focus to Chinese investment for both mines.
“I can confirm that ZMDC is looking for potential investors who are prepared to inject working capital into the gold mines to increase production,” she said.
The terms for the investment, she said, will be discussed with the prospective investors and the most prudent option will be adopted by ZMDC.
She said the resulting partnership between ZMDC and the investor should transform the quality of life of Zimbabweans and contribute to the economic development of the country.
She added that being a gold producer, there has been interest in all the mines from foreign investors and ZMDC is yet to secure an investment partner.
“ZMDC will pursue this strategic direction and outcome until a formal partnership agreement has been concluded. Full details of the partnerships and the identity of the investor will be disclosed soon.
“A negotiating team returned late last year from China,” she said.
At the International Fair for Investment and Trade (CIFIT), Xiamen, China last year most investors indicated that they will be visiting the mines soon to consider investment options.
Funding requirements for Sabi, Jena and Elvington mines are for surface exploration and development to increase the ore reserve base, shaft re-deepening to access depth extensions of ore bodies, improve ore handling and transfer systems as well as plant refurbishments to increase through-put.
Each individual mine requires investment due to the different equipment requirements, exploitation levels and the target size.The state owned mining company is currently facilitating the reopening of Kamativi tin mine and Mhangura copper mines.
Despite various constraints over the years, ZMDC has managed to contribute significantly to government coffers having paid at least $400 million in dividends to government between August 2011 and September 2012.
Bongani Ndlovu