Rudo Saungweme

Government is set to restructure the Zimbabwe Mining Development Corporation (ZMDC) in a move meant to enhance the effective management of the holding company.

A Senior Government official who spoke on condition of anonymity said that ZMDC had proposed a Joint Venture Partnership privatization framework which will see the holding company disposing-off its assets as a bundle under one mineral umbrella as opposed to disposal of individual mines.

“Under the Joint Venture Partnership framework, ZMDC is going to dispose-off its assets as a bundle under one mineral umbrella as opposed to disposal of individual mines.

“For instance, in the gold subsector, a partner for ZMDC will be allocated management of all four ZMDC gold miners, which are, Sabi, Jena, Elvington and Golden Kopje, as opposed to an investor for each gold mine,” the source revealed.

Another inside source in the ZMDC Company indicated that this is a noble strategy of attracting internationally reputable mining companies such as Glencore and Rio Tinto.

“The strategy is seen as an effective way of attracting internationally reputable mining companies, such as Glencore, Rio Tinto and BHP,” he said.

The source added to say that, International investors are targeted on the premise that they have the competence, strong capital bases and experience needed to turn around the fortunes of ZMDC.

Analysts have highlighted that the unbundling of ZMDC will enhance the company’s effective management, unlike in the previous set up where ZMDC was overburdened with strategic management over 45 subsidiaries.