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The SMM, once the sixth biggest asbestos producer in the world, ceased operations in 2008 and left 3 100 workers without jobs.
The closure of the Midlands based mine turned Zvishavane into a ghost town.
ZMDC chairman, Mr Goodwills Masimirembwa, confirmed the deal with Sir Avantica in an interview with the Herald yesterday.
“We signed a non-disclosure agreement with Sir Avantica recently. They are coming in as technical partners,” he said.
Mr Masimirembwa said Sir Avantica would not have any shareholding in the SMM.
“We retain our 100 percent shareholding. The idea is on contract mining and not for them to take shareholding in the SMM.
“They will be mining and we will be paying them,” he said.
Justifying the agreement, Mr Masimirembwa said contract mining was not a new phenomenon as most mining activities going on the world over were on such basis.
“The ZMDC, Sir Avantica and the administrator Mr Arafas Gwaradzimba are currently carrying out a joint feasibility study with the aim of reviving mining operations at
Shabanie as efforts to resume operations gather momentum,” he said.
Asked when mining activities were likely to resume, Mr Masimirembwa said: “We are still de-watering the mine. We need to establish what equipment needs to be replaced.
“The mine was flooded and a lot of equipment got damaged.
“There are issues of re-tooling and repairs. You do not just start mining when the mine has been dormant for a long time. We hope to start operations soon.”
The ZMDC has been paying SMM employees their salaries despite the fact that no mining operations have been taking place.
It had forked out US$1 million in outstanding salaries to SMM workers as of January this year.
By then the workers were owed an estimated US$20 million.
The ZMDC took over the SMM last year after Government assigned the parastatal to oversee the revival of the mines.
Efforts to find an investor for the SMM were being frustrated by Mr Mutumwa Mawere, who is battling to regain control of the asbestos mines.
Mr Mawere is challenging the take over of the mines by the ZMDC in court but the parastatal has vowed to press ahead with its efforts to revive operations at SMM.
Online Reporter