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Gold/Mining/Energy : Mining News of Note

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To: LoneClone who wrote (44519)	10/5/2009 10:15:51 PM
From: LoneClone	Read Replies (1) of 194260

Zimbabwe: ZMDC in Bid to Reopen Kamativi Tin Mine 5 October 2009 allafrica.com Harare — THE Zimbabwe Mining Development Corporation is holding discussions with a South African company to reopen the Kamativi Tin Mine. Kamativi Tin Mine was closed in 1994 following a slump in global tin prices and the mining-out of the higher grade ores, but the metal prices have picked, making the reopening of the mine potentially viable. ZMDC chief executive Mr Dominic Mubaiwa said the investor had just completed a due diligence of the mine adding a deal could be sealed soon. "Negotiations are ongoing with our South African partners (whom he did not want to name at this stage) and we expect the discussions to be completed in the next three months," said Mr Mubaiwa. He said once negotiations were completed, preparations to start mining would begin. Considering Kamativi Mine was once operational, it should take between 12 and 18 months for mining operations to resume Mr Mubaiwa said the South African investor has vast experience in tin and tantalite mining. Kamativi Mine used to be the biggest underground tin mine producing high-grade tin and tantalite and still has large deposits of the minerals. The mine's problems started in the 1990s when it faced viability challenges stemming from reduced demand for both tin and tantalite, but Government prevented its collapse through several financial handouts. For close to a decade now, the Government has sought investors willing to resuscitate the mine without success. ZMDC is focussing largely on partnerships as it does to have the financial wherewithal to go it alone in the capital-intensive mining industry. The state enterprise will continue to seek a lot of mining rights for possible partnerships especially in the gold and platinum sectors where there is huge investor interest. ZMDC has received a lot of enquiries from investors willing to partner it in various mining ventures, especially the exploitation of platinum and gold. The formation of the inclusive Government has also seen frenzied interest to invest in the country's mining industry. The Mining Indaba, which was held in the capital last month further heightened interest to invest in Zimbabwe as investors learnt of the investment opportunities available all over the country's geographical spread. At its peak, in 1996, the mining industry accounted for 50 percent of foreign currency inflows and over 7 percent of the Gross Domestic Product.

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