Govt-British firm in multi-million deal

21 Jun, 2015 - 00:06 0 Views
Govt-British firm in multi-million deal Mr Wilson Gwatiringa

The Sunday Mail

Mr Wilson Gwatiringa

Mr Wilson Gwatiringa

Zimbabwe is set to rake in about $10 million annually from mining tungsten and other rare minerals in Matabeleland North Province under a US$100 million venture between Government and a British firm.

The new venture is already mining tungsten while exploration for rare earth minerals tantalite, fluorspar and lithium is already underway and actual mining operations are expected to commence before the end of the year.

A monthly production target of 100 tonnes of tungsten is being projected.

The mining of the minerals began last week under a joint venture company that brought together the National Indigenisation and Economic Empowerment Board (NIEEB), through its investment vehicle National Indigenisation and Economic Fund (NIEEF) and a United Kingdom registered company listed on Alternative London Stock Exchange as Premier African Minerals Limited.

The venture is operating as Zimbabwe Development Holdings.

Premier African Minerals has vast experience in exploration and mining in Southern and West Africa.

Operations began with open cast mining and it is expected that after two years, operations will shift to shaft mining.

Last week, NIEEB chief executive officer, Mr Wilson Gwatiringa told The Sunday Mail Business that the mining of tungsten began after the British firm has sunk in millions of dollars in exploration, purchase of equipment and its installation.

“We have already started mining and have already sorted out the export requirements. MMCZ (Minerals Marketing Corporation of Zimbabwe) has already approved everything,” he said.

Mr Gwatiringa said the mining venture is targeting to export 500 tonnes of tungsten by December.

“Of the 500 tonnes we are expecting to export by year end, we will rake in about $10 million. These figures are expected to double as production increases,” said Mr Gwatiringa.

The NIEEB boss said the joint venture is 51/ 49 in line with the country’s indigenisation laws.

The British firm provided funding and technical expertise and will hold 49 percent while NIEEF is providing the mineral resources and will hold 51 percent equity.

Permanent secretary in the Ministry of Youth, Indigenisation and Economic Empowerment, Advocate George Magosvongwe said the mining operations have already begun and jobs are going to be created.

“I do not have the finer details but I can confirm that mining operations begun last week,” he said.

Tungsten is a hard mineral which is largely used in the manufacturing industry. It has the highest melting point of all metals and is alloyed with other metals to strengthen them.

Tungsten and its alloys are used in many high-temperature applications such as arc-welding electrodes and heating elements in high-temperature furnaces.

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