The Sunday Mail
News Editor
Great Dyke Investments’ platinum project in Darwendale is progressing smoothly, with fresh projections indicating that the Zimbabwe-Russia joint venture will earn the country up to US$350 million annually when it starts exporting the Platinum Group Metals (PGMs) in 2023.
This dovetails with plans for the mining sector to earn US$12 billion annually from 2023 as part of targeted milestones under Vision 2030.
In the next two years, GDI plans to invest US$650 million to complete construction of a world-class platinum mine.
The company — a joint venture between Russia’s Vi Holding and Zimbabwe’s Lindela Mining Ventures — is a high priority project in economic and diplomatic ties between Harare and Moscow after President Mnangagwa met his counterpart President Vladimir Putin in Russia last year, giving a huge boost to the project.
By March next year, the project is expected to have completed all engineering works to pave way for completion of the mine.
In an interview with The Sunday Mail, GDI vice chair Mr Igor Higer said the firm will invest US$650 million into the project by 2022.
“Total capital to bring the Darwendale Phase 1 to production is projected above US$650 million which is to be invested during 2021-2022. Starting from year 2023 average annual revenue of the Darwendale project is expected to be more than US$350 million and above. The first exports will come 25 months from now.”
Under project works undertaken so far, GDI has excavated two mega boxcuts.
A boxcut serves as the first step in the excavation of mining areas and may be the sole excavation method used on a project, or the first of various techniques.
“Shotcreting activities at Boxcut 1 are currently underway. The work is targeted for completion in the second week of December 2020, and excavation was completed earlier this year. Boxcut 2 excavation is almost done. Portal 1 decline development is in process. All engineering works (FEED and detailed engineering) are slated for completion in Q1 (First Quarter) 2021 so as to allow the project to move into a full-scale construction phase and long-lead items procurement,” said Mr Igor.
Developments taking place at the mine have resulted in a massive facelift of Darwendale where massive infrastructure development is taking place. To date, the company has created 500 jobs with 1 700 employment opportunities to be offered when the project is at full throttle.
Some of the seminal infrastructure projects underway include extensive road construction and massive development of the power supply system.
Mr Higer said hundreds of new state-of-the-art houses will also be built in the area.
“Infrastructure development, among most salient, will include new roads construction/renovation and upgrading of existing network, construction of a new 330kV overhead power transmission line (2×11.5km, 330kV, 963MVA, Cut In/Cut Out on Alaska-Warren Line) and ancillary facilities/substations, and a housing project which will aim to achieve a sustainable and affordable housing solution to categories of the working population of the mine keeping the view that a better housed workforce includes greater labour stability and improved productivity.”
Last week, the project scored another victory when a local company, Fossil Mining, acquired a 4.4 percent stake in the company after investing US$30 million.
In a statement, GDI said this showed the huge interest that local companies have in the Zimbabwe-Russia joint venture.
“In accordance with the agreed terms, Fossil shall invest an amount of USD 30 million through a combination of cash and services into the company in exchange for a 4, 4% stake, valuing the company at USD 680 million. As stated the investment consists of a cash investment as well as providing certain defined engineering, procurement and construction services with respect to the Darwendale Project. Such a transaction with another local Zimbabwean partner shows the high level of interest in the project.”
Fossil boss Mr Obey Chimuka said “the partnership with Afromet and Landela in a highly prospective mining project in Zimbabwe marks a significant achievement for Fossil.
He added:
“The engineering and construction services will be provided to industry standards and Fossil’s participation will help to improve infrastructure within Zimbabwe while ensuring local content is increased through the use of local workforce, contractors and suppliers.”
GDI is earmarked to be one of the largest platinum operations in Zimbabwe alongside ZimPlats, Mimosa and Unki, as well as the developing Karo Resources project.
Zimbabwe has the world’s second largest platinum reserves after South Africa.
