Home » Education » CHINESE INVESTOR TO INJECT 100 MLN USD INTO TIN MINE PROJECT IN ZIMBABWE

A Chinese investor, Beijing Pinchang, is set to inject 100 million US dollars into the Kamativi Tin Mine in Zimbabwe's Matabeleland North Province in a deal that will see the company and the State-owned Zimbabwe Mining Development Corporation (ZMDC) jointly owning the entity, says Mines and Mining Development Minister Walter Chidhakwa.

The mine, which has been closed for 21 years, has around 40 million tons of open cast reserves and is considered one of the best tin mines in the world.

Chidhakwa told Parliament here Tuesday that Beijing Pinchang had agreed to a deal which would see it injecting 100 million USD for a 49 per cent stake in a joint venture company to operate the tin mine.

Presently, a team of six geologists and metallurgists are on the ground carrying out valuations of other minerals found along with tin.

"When Kamativi closed they were only mining tin but it also has other minerals such as tantalite which are now significant minerals on the market. Therefore any attempt to re-open Kamativi without looking at other minerals believed to be there is disadvantaging the country," he said.

Under the agreement, the mine would be jointly managed in line with the shareholding structure.

Initially, the ZMDC had projected that at least 50 million USD were needed to restart operations at the mine.

Chidhakwa said although the ZMDC had the strongest balance sheet in terms of asset base and concessions among all mining companies in Zimbabwe, it had failed the nation through under performance.

He said the ZMDC had several mining companies which were idle and these include Shabani Mashava, Elvington, Jena and Sabi Mines.

"ZMDC has failed to perform as expected of it. It has failed to complement its role towards the development of the economy," he said. "If ZMDC was performing, it would have been the biggest company in this country."

Source: NAM NEWS NETWORK

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