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The Zimbabwe Mining Development Corporation is currently negotiating for a $6 million loan facility for the recapitalisation of its Jena mine in the Midlands Province.A source close to the developments at ZMDC told the Herald Business that a fortnight ago there was an urgent board meeting to deliberate on issues around the loan facility.
“There was a board meeting a fortnight ago and ZMDC is in negotiations with a local financial institution over a $6 million loan facility aimed at recapitalising Jena Mine.
“Earlier the company was close to securing about $6 million from Fidelity Printers and other private sources to cater for the recapitalisation of the mine but we ended up getting only $1 million from that arrangement,” said the source.
“As you are aware, Jena Mine’s equipment is now old and there is need for a massive recapitalisation of the mine and several recapitalisation efforts are being looked at. The mine has immense potential once fully recapitalized,” said the source.
Contacted for comment, ZMDC chairman David Murangari refused to disclose the nature of the transaction.
“I am not at liberty to disclose such information to the press because we are still under negotiations and it is still private and confidential,” said Mr Murangari.
Overall, the mining group is looking at introducing short, medium and long term phases for all its mines with the aim of improving efficiencies and ramping up production.
ZMDC runs three gold mines namely, Jena, Elvington and Sabi mine.
Sabi needs $15 million to enable it to produce 45 kgs of gold per month.
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