The Sunday Mail
Kuda Bwititi – Senior Reporter
Less than a week after sealing a US$3 billion pact to mine platinum in Darwendale, Russian investors have alrady disbursed part of the US$400 million budgeted for the first phase of the historic venture, with equipment installation scheduled to start in early 2015.
While exact figures were not immediately obtainable, Great Dyke Investments – the company running the US$3 billion project – confirmed it had started receiving the funds, which are being released in large tranches.
Zimbabwe and Russia commissioned the project last Tuesday and expect to harvest nearly one million ounces of platinum yearly, and also create thousands of jobs.
Great Dyke Investments is a joint venture between the Zimbabwe Mining Development Corporation and a Russian consortium. It has been mandated to superintend operations during the three-phased venture.
Funding is being provided via VEB, Russia’s largest bank.
Great Dyke Investments chair Dr Hesphina Rukato told The Sunday Mail: “I do not have the figures at hand, but what I can confirm is we have started receiving funds for the project. US$400 million is required for the first phase.
“So, funds that have been disbursed to date have been spent on the final stages of affirming the exploration that has been done so far, as well as laying the groundwork for the establishment of infrastructure at the mine.
“They are in the process of now identifying the mining areas and areas where infrastructure will be developed. This is work in progress. What this means is construction of the actual facilities will commence anytime soon.”
Zimbabwe’s top diplomat in Russia, Ambassador Boniface Chidyausiku, said there was firm commitment to finance the deal and also confirmed the disbursement of phase 1 funds.
“I know work has already started, and the financial agreement signed at the launch of the project between the Russian consortium and the bank is that the money earmarked for financing the project and the exploration has been provided for.
“My understanding is that this is a joint venture between the Russian consortium and the Zimbabwean company. In terms of our laws, the investor will bring money into the project and we bring our asset into the project.
“That’s my understanding of the arrangement. So, we are bringing in platinum, they are bringing in money to exploit and develop the asset.”
Phase 1 involves exploration, setting up infrastructure as well as constructing and commissioning first stage mining and processing facilities.
Engineers are already identifying mining and infrastructure installation areas and drilling has begun.
It is estimated this phase alone will create 2 000 jobs.
Phase 2, running from 2018 to 2021, will see the first ground mine become operational and two more such mines being constructed and commissioned.
In addition, a second processing plant will be set up while additional underground mines will be constructed in the third phase.
A minimum of 5 000 jobs will be created through all three phases with more benefits expected in technological transfer and skills development, education, health, and local infrastructure improvements.
The deal follows hot on the heels of major economic agreements Zimbabwe and China signed during President Mugabe’s State visit to the Asian country last month.
The agreements, covering key areas such as energy, tourism, telecommunications and infrastructure development, are also poised to improve the country’s economy and development.
