Zimbabwe government-owned mining vehicle, Zimbabwe Mining Development Corporation ,is looking for $500 million to revive its three copper mines, according to the Zimbabwe’s newspaper, The Herald Business.
ZMDC owns three copper mines, Mhangura, Sanyati and Alaska, which it says have significant potential. The company is looking for different investors to participate either as on joint venture basic or take up equity in any or all the copper mines.
Providing an update on the efforts to find a credible investor, ZMDC Acting General Manager, Luke Akino, said: “Securing investment is guided by a defined process with several approval stages. There are no approved investments yet for copper. ”
Akino said the state mining group would continue to make the mines attractive through regular updating of inspections, care and maintenance work as well as investment promotional initiatives. “Various projects are underway to resuscitate the different mines with assistance from government. The investments will depend on the final scope of the projects,” he explained.
Studies done on the copper mines so far shows that Mhangura mine compared to other copper operations has the least resource while there are better prospects at Sanyati copper mine. Mhangura mine was closed in 2000 due to weak copper prices and its revival requires serious and holistic investors with a long term position on investment.
Earlier ZMDC has been considering investors with capacity to develop the whole copper value chain in the country either as individuals or a syndicate. The state mining vehicle’s working capital position has continued to deteriorate while there is uncertainty in its ability to continue as a going concern, yet it remains a company with the richest mining assets in the country-talk of a poor company sitting on rich mineral deposits.