Govt proposes US$6m investment for tungsten project

15 Mar, 2019 - 00:03 0 Views
Govt proposes US$6m investment for tungsten project

eBusiness Weekly

Tawanda Musarurwa
Government has proposed to invest US$6 million to resuscitate operations at its 51 percent owned RHA Tungsten Mine.

The mine, which is located approximately 270km northwest of Bulawayo, is 49 percent owned by diversified regional focused mining group Premier African Minerals and managed through its wholly-owned local subsidiary Zimdiv Holdings Limited.

In a notice to the London Stock Exchange, Premier announced that the Minister of Industry, Commerce and Enterprise Development Mangaliso Ndlovu sent a letter to the mining group indicating the funds it is willing to invest to resuscitate the mine.

“Premier African Minerals Limited is pleased to report that the Company received a letter on the afternoon of 12 March from the Zimbabwe Ministry of Industry, Commerce and Enterprise Development which states that the Ministry has secured a proposed investment of US$6 million investment into RHA Tungsten (Private) Limited for the immediate recommissioning of mining operations, subject to completion of the appropriate agreements,” said Premier CEO Goerge Roach.

“The letter also states that Zimdiv Holdings Limited, which is a wholly-owned subsidiary of Premier and which manages the RHA Mine, will be awarded another management agreement on similar terms to the current management agreement, which was entered into on 23 September 2013.

“The company will provide further updates once the agreements have been signed.”

The RHA project comprises 50 Mineral Claim Blocks, covering 1,800 hectares, consisting of 10 owned by Premier and 40 which are under option.

Small-scale surface and underground mining was conducted at the site between 1931 and 1979, with total production from the RHA mine standing at 1,247.65 tonnes of wolframite concentrate, containing 65 percent WO3.

Premier has so far invested around US$18 million in the acquisition and development of the mine as well as the plant and necessary infrastructure.

Government said mining and agriculture are key sectors that are expected to anchor economic growth.

Zimbabwe’s mineral resources include, amongst others, coal, chromium ore, nickel, copper, iron ore, vanadium, tin, platinum group metals (such as palladium) and diamonds. Globally it is a significant producer of lithium, chrysotile asbestos and vermiculite.

Reports say Zimbabwe is sitting on tens of billions worth of minerals waiting for exploitation.

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