by Derick Tsimba

Government through the Zimbabwe Mining Development Corporation (ZMDC) is partnering Landela Investment Private Limited on a joint venture agreement to mine ZMDC gold mines, targeted for implementation this March 2020.

A source within ZMDC said the joint venture should see Landela take majority ownership in Jena Gold Mine, Elvington Mine, Golden Kopje Mine and Sabi Gold Mine.

“Currently Landela is assessing the ZMDC mines, the assessment will ascertain the condition of the ZMDC mines and the investment requirements to kick start the production process.

The source also said, “In the mining agreement, Landela Investment will assume the larger stake of the deal at an 85% stake while ZMDC attains 15%.  Landela is going to clear all debts accrued by the gold mines and recapitalise the mines for the resuscitation of mining activities to the tune of US$178 Million. Under the agreement, Landela Investment will assume the managerial and administrative responsibilities without the involvement of ZMDC in the management activities,” said the Source.

Landela Investment is a subsidiary of a multinational commodity trading group Sotic International Ltd a Mauritius-based firm. Sotic International Ltd has business interests in minerals and oil trade across the Southern Africa Development Community (SADC) region and Zimbabwe. It is also part of the Great Dyke Investments (GDI) board partnering the Russian-led Darwendale platinum mine project.

Harare Post has learnt that ZMDC will be partnering Landela Investment under a 25 year renewable agreement in a move that should revamp ZMDC mining activities ensuring production in the mining industry.