Govt targets $1bn offshore for mining

12 Oct, 2018 - 00:10 0 Views
Govt targets $1bn offshore for mining Minister Chitando

eBusiness Weekly

 Ishemunyoro Chingwere
Government is seeking to mobilise at least $1 billion offshore for a quick rebooting exercise of the country’s mining sector under the Transitional Stabilisation Programme spelt out by Finance and Economic Development Minister Professor Mthuli Ncube recently.

The new dispensation, which has placed economic revival on top of its to-do list, has identified mining as one of the key sectors that should kick-start recovery after years of regression in the previous dispensation.

The sector, according to Government’s economic revival blueprint, needs over $11 billion in investments for greenfield and brownfield projects and this will see the re-opening of closed mines, expansion of mines currently operating below capacity, opening of new mines as well as mineral beneficiation and value addition.

But before the major investment an initial $1 billion is required.

“With mining greenfield and brownfield projects requiring over $11 billion in investments, the spotlight on quick-wins will be around sustaining current beneficiation initiatives to harness the spin-off benefits to attain incremental value addition contribution to GDP growth,” notes Government in the stabilisation programme.

“The capital requirements for the industry are for both ramp-up and sustenance, and also take account of emerging new projects coming on board.

“The Transitional Stabilisation Programme is facilitating initiatives by mining houses operating in Zimbabwe to float syndicated bonds offshore, as part of companies’ efforts to raise capital offshore to finance re-tooling of antiquated mines.

“This will initially target raising $1 billion, with the instrument guaranteed by Government as already undertaken by Government at the March 2018 investment meeting in London, where representatives of several international investment banks and London Stock Exchange officials participated,” says Government.

Mines and Mining Development Minister Winston Chitando in March this year was in London for the “Zimdaba London 2018” which gave investors and business leaders from the United Kingdom an opportunity to get, first hand, Government’s plan and the opportunities thereof in the local mining sector.

Earlier in the week Minister Chitando was in London together with Minister Ncube scouting for investors.

Minister Chitando also attended the Financial Markets Indaba and Thompson Reuters organised interactive Mining Investment Roundtable under the theme “Zimbabwe: Mining listings – the new chapter.”

The meeting was attended by investors from London as well as lender organisations.

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