Staff Reporter
Cabinet yesterday approved that Kuvimba Mining House be engaged as the investment partner for the resuscitation of ZISCO Steel.
This was revealed by Acting Information, Publicity and Broadcasting Services Minister, Jorum Gumbo during a Post Cabinet Press Briefing in Harare.
“Cabinet is informing the nation that due process was undertaken for the identification of an investor to partner Government in the operationalisation of ZISCO Steel. The standard process to find an investor/partner for ZISCO-Steel was undertaken under guidance from the Zimbabwe Investment Development Agency (ZIDA) and incorporated inputs from the State Enterprises Restructuring Agency (SERA).
“Initially, nine prospective investors expressed interest, and after a review by the Executive Management team, four bidders were shortlisted. Following further due diligence, the bidders were reduced to three. Out of the three, Kuvimba Mining House was recommended,” said the Minister.
“Accordingly, Cabinet approved that Kuvimba Mining House be engaged as the investment partner for the resuscitation of ZISCO Steel,” she added.
Kuvimba Mining House is a reputable player in the mining and metals sector, and has previously been involved in the recent resuscitation of Jena Gold Mine in Midlands Province and Shamva Gold Mines in Mashonaland Central Province, a process which has resulted in the remittances of dividend to Treasury.
Meanwhile, Cabinet also noted the Joint Venture Partnership between ZMDC and Chandiwana Mines (Pvt) Ltd on the resuscitation of operations at Sabi Gold Mine. Chandiwana Mines (Pvt) Ltd will inject the necessary working capital, while ZMDC will contribute mineral and material resources. The joint venture will be for a five year period and will contribute 1 428 kilogrammes of gold to overall national production.
The project will initially create 650 jobs for locals, and this number will subsequently benefit 800 employees at full production.
ZMDC is also expected to partner Govine Enterprises on the resuscitation of underground operations and dump treatment at Shamrock Copper Mine in Mashonaland West Province. The mine is expected to produce 34 200 metric tonnes of copper per year and could generate US$45 million annually when fully operational. ZMDC and Govine Enterprises will share revenue from gross sales in the ratio 20:80 in the first six years and 33:67 in the subsequent four years.
The Government of Zimbabwe in October 2019, launched USD12 Billion Mining Economy by 2023 as part of the broader macroeconomic roadmap towards an Upper Middle-Income Economy by 2030. The USD12 billion mining industry represents a 344% increase from the USD2.7 billion registered in 2017.
The multi-billion-dollar industry will be driven by gold, platinum, diamond, chrome, iron ore, coal, lithium, and other minerals that the country is blessed with.
