Six bidders eye ZMDC assets

08 Nov, 2018 - 00:11 0 Views
Six bidders eye ZMDC assets

The Chronicle

GOVERNMENT will in two weeks announce the successful six bidders for assets owned by the Zimbabwe Mining Development Corporation (ZMDC) including gold mines.

Mines and Mining Development Minister Winston Chitando said this before a Parliamentary Portfolio Committee on Mines and Mining Development on Monday.

He said that 20 other companies would be put on sale by month end, online mining magazine reported.

Minister Chitando was quoted as saying ZMDC would either sell outright, or seek joint ventures, for the mines, most of which were either operating below capacity or under care and maintenance.

“As Government, we would like to see each and every asset owned by ZMDC getting into production,’ he said. Recently, then ZMDC acting general manager Mr Garikayi Chimhina had told Business Chronicle that his entity had shortlisted Canadian, South African and local investors for joint venture partnerships to resuscitate their defunct gold and graphite mines in the country. London-listed Caledonia Mining Corporation, which already operates Blanket Mine in Matabeleland South province, is among the bidders for the two gold mines.

Mr Chimhina is on record as saying investors from the two countries had also been shortlisted under a joint venture arrangement for its two coal-bed methane projects in Lupane.

ZMDC mines that require resuscitation include Sandawana, Jena, Elvington and Lynx, a graphite operation in Karoi. It is hoped that if recapitalised, the mining development corporation would be able to tap into minerals such as gold, emeralds, tantalite, iron ore, and lithium deposits at Sandawana Mine in Mberengwa.

On Jena Mines, which was re-opened recently, the parastatal was seeking investors with a view to inject fresh capital to boost gold production at the mine.

Elvington Gold Mine, which was on care and maintenance, suspended operations in 2003 due to the collapse of one of its main shafts.

The mine is involved in dump retreatment while preparing for resuscitation of underground operations. And prior to suspending operations, Elvington used to produce 45 kilogrammes of gold per month.

Lynx Graphite Mine is also under care and maintenance after closing down some years ago when a Germany investor pulled out of the partnership. — miningweekly/Business Chronicle

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