ZMDC tender “oversubscribed”, winners to be announced by month end

07 Nov, 2018 - 10:11 0 Views
ZMDC tender “oversubscribed”, winners to be announced by month end

eBusiness Weekly

HARARE – The Zimbabwe Mining Development Corporation (ZMDC) received over 150 bids for its struggling mining  companies that it put on tender at the beginning of  the year, a cabinet Minister has said.

In February, ZMDC, a government firm, which owns an empire in the  mining sector, put up its struggling or closed companies that it seeks  to revive up for grabs to interested investors.

The company owns massive resources that have not been fully exploited  due to low investment while some of its subsidiaries have in the past  struggled and shut down as a result of viability and governance issues.

The companies put up for grabs are involved in the mining of gold,  emerald, lithium and tantalite.

ZMDC is also aiming for a partnership in a coal bed methane production  project.

Mines and Mining Development Minister, Winston Chitando told the  Parliamentary Portfolio Committee on Mines that the ZMDC had since done  due diligence on the firms that submitted bids.

“There are six assets which were put on tender and the response was  just overwhelming. There were 151 respondents to that,” he said.

“The volume was much more than anticipated but the board has gone  through all the due diligences and other processes within government and  the chairman has assured me that in the next two weeks they will be  convening to announce the successful tenders.”

Chitando said the recently appointed ZMDC board, chaired by Peter  Chimboza, had also committed to putting the remaining operations, which  are either struggling or currently not functional due to a variety of  reasons, on tender before the end of this month.

“At the end of the day as government, we would like to see each and  every asset owned by ZMDC getting into production,” he said.

The mining sector, currently the biggest foreign currency earner, is  one of the key sectors on which Government is relying in its push for  Zimbabwe to attain a middle income economy status by the year 2030. – New Ziana

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