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(HERALD) Two investors to fund Mhangura mine reopening

Two investors to fund Mhangura mine reopening
By Walter Muchinguri

THE Zimbabwe Mining Development Corporation (ZMDC) has agreed terms with two investors from Austria and South Africa to fund the reopening of Mhangura Copper Mine. Mhangura Copper Mine has been closed for almost a decade now due to high gearing and a declining ore body. ZMDC chief executive Mr Dominic Mubayiwa said this week the group was working on agreements with investors to help recapitalise the mine.

He did not give further details citing confidentiality. New explorations have been undertaken and it is unclear if the explorations had ascertained the lifespan of the copper ore body.

"We are in the process of implementation and it is difficult to say when we will be done, but progress is achieved each day," he said.

He said one of the investors was going to hold exclusive exploration rights while the other would run the mine’s smelter and plant.

A number of foreign investors from India, Iran and Russia have shown interest in the mine.

In recent years Chinese investors have mounted a strong bid to reopen the mine and many companies have been beating a beeline to Mashonaland West province, where the mine is situated, to seek opportunities.

Chinese companies have been behind the resuscitation of closed mines in Zambia.

Mhangura Copper Mine ceased operations seven years ago due to a host of problems, underpinned by poor cashflow and mounting debts.

At its closure the mine owed money to Zesa Holdings, the Zimbabwe Revenue Authority and the National Railways of Zimbabwe.

A total of 1 500 workers were left jobless.

With the closure of the mine, the mine’s copper refinery which had the capacity to mill 4 800 tonnes per month, also wound up operations.

With a capacity of about 55 000 tonnes, Mhangura was the ZMDC’s flagship.

Global copper prices have trended upwards throughout the last 10 months, with the COMEX spot price reaching a record-high monthly average of US$1,90 per pound in October.

There is vast scope for the reopening of Mhangura Copper Mine, as that would cut Zimbabwe’s foreign currency bill in importing copper and related products needed, mostly in the electricity sector.

Labels: ZIMBABWE, ZMDC

posted by MrK @ 8:45 AM