Zimbabwe to announce winning bidders for mining assets in two weeks


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Zimbabwe will announce in two weeks the successful bidders for assets owned by state-owned mining company Zimbabwe Minding Development Corporation, including gold mines, the Mines Minister Winston Chitando said yesterday.

He said more companies would be put on sale at the end of November.

Selling struggling state-owned companies, known locally as parastatals, is part of President Emmerson Mnangagwa’s wider reforms to cut government expenditure.

Chitando told a parliamentary committee that after announcing winning bidders for its six mines, the ZMDC would put on sale its remaining 20 assets by the end of this month.

ZMDC will either sell outright, or seek joint ventures, for the mines, most of which are either operating below capacity or under care and maintenance, Chitando said.

ZMDC has equity in Todal Mining Platinum, Shin Zim, Platinum Platinum, Ruschrome Platinum, Global Platinum Resources Platinum, Afri –Sino Mining Resources Uranium, Lynx Mine Graphite, Marange Resources, Sabi Gold, Jena Mine, Elvington Gold, Sandawana Mine, Kamativi Tin Mine, Mhangura Copper Mine, SMM Holdings (Pvt), Sanyati Copper Mine and Lomagundi Smelting.

It also had interests in diamond operations Mbada Diamonds, Diamond Mining Corporation, Jinan Mining, Gye Nyame Resources, Kusena Diamonds, Anjin Mining Investments and Rera Diamonds.

London-listed Caledonia Mining Corp, which already operates Blanket mine in southern Zimbabwe, is among the bidders for two gold mines.

“As government, we would like to see each and every asset owned by ZMDC getting into production,” Chitando said.

Gold is Zimbabwe’s single largest mineral export. Bullion output reached a record 994 726 ounces between January and October this year, compared with 952 397 ounces for the whole of 2017, Chitando said.

Small scale producers, who are paid in cash for their deliveries to a central bank-owned subsidiary, now account for 61 percent of total gold production in Zimbabwe, according ministry of mines data.

Big gold miners, however, say their operations are being hampered by US dollar shortages, which last month forced RioZim to temporarily shut its mines. –TR/Own

 

(71 VIEWS)

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The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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