ZMDC seeks $500m to revive copper mines
STATE mining vehicle, Zimbabwe Mining Development Corporation is hunting for $500 million required to revive its three copper mines together with a new smelter and refinery.
ZMDC has three groups of Copper Mines namely, Mhangura Copper Mines, Sanyati and Alaska Mine.
Studies done show that there is significant potential on the copper mines and ZMDC has been engaging different investors to participate either as a joint venture or take up equity in any or all the copper mines.
ZMDC acting general manager Luke Akino told The Herald Business in an emailed response that securing investment for the copper mines is guided by a defined process with several approval stages.
“Securing investment is guided by a defined process with several approval stages. There are no approved investments yet for copper.
“The copper mines would require at least $500 million to open up Sanyati Mine, Mhangura and Alaska Mines. Complete with a new smelter and the refinery at Alaska,” said Mr Akino.
He said the state mining group will 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 said.
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.