Zimbabwe's Kuvimba seeks $1 billion for platinum, gold projects

8VI Holdings

08/01/2021 11:17

HARARE, Jan 8 (Reuters) - Zimbabwe's unlisted Kuvimba Mining
House is seeking to raise $1 billion for its gold and platinum
projects, including a gold mine that could produce 150,000
ounces a year, as well as exploration, its chief executive
officer said on Friday.
    Kuvimba was established last year and is 65% owned by the
government with the balance held by management through a
Mauritius-based company Quorus.
    David Brown said in emailed responses to questions from
Reuters that the bulk of the capital expenditure would be spent
on bringing Shamva Gold Mine, which was bought from
British-based Metallon Corp in 2019, into full operation in
around three years' time. 
    Metallon had put Shamva under care and maintenance in early
2019 because of mounting debts.
    Zimbabwe, grappling with its worst economic crisis in more
than a decade, is pursuing an ambitious plan to raise mining
output and earn the country $12 billion a year. Platinum and
gold mining are seen as an anchor of that drive. 
    Rising metals prices could help attract investors into
mineral extraction to generate much-needed foreign currency.
    Gold gained about 25% in 2020 as global central banks and
governments delivered economic stimulus, laying the ground for
higher inflation and currency debasement. The price of platinum
also rose more than 10%.
    Brown said money would be raised from "three sources –
internally-generated cash flows, debt funding and possibly
equity funding. The first two sources are the preferred route at
this time".
    Kuvimba would use part of the $1 billion to fund
developments at Darwendale platinum mine over the next 24
months. 
    Russia's Vi Holding, through its JSC Afromet subsidiary
jointly owns the Darwendale venture near Harare.
    Kuvimba is also majority owner of listed Bindura Nickel
Corporation  BIND.ZIM  and is seeking to acquire chrome and more
gold assets, Brown said.

 (Reporting by MacDonald Dzirutwe; editing by Barbara Lewis)
 ((macdonald.dzirutwe@thomsonreuters.com; +263 4 799 112;
Reuters Messaging:
macdonald.dzirutwe.thomsonreuters.com@reuters.net))