Zimbabwe: Mineral Base Set to Develop As ZMDC Acquires Sandawana
Wednesday, August 23rd 2006
ZIMBABWE Mining Development Corporation (ZMDC) has acquired Sandawana Mines in a move that is expected to develop the mineral base at the Mberengwa mine.
In a statement released last week, ZMDC said the acquisition was achieved through the purchase of shares from the majority shareholder, Northbrook Ltd, registered in the British Channel Islands and was in line with the corporation’s growth strategy.
“This acquisition is envisaged to unlock the value in this company through the development and exploitation of the diverse mineral base at Sandawana,” said ZMDC.
Sandawana Mine, in the Midlands Province, has been producing high quality emeralds for over 40 years.
Consequent to the acquisition, the Sandawana board would be revamped to reflect the new shareholding structure.
The acquisition was effected early this month and was in line with the Government’s plans to acquire 51 percent in gold and other strategic minerals as part of long-term efforts to reduce foreign ownership.
In June this year the corporation embarked on the resuscitation of closed mines in partnership with Chinese investors.
The Government-owned entity has so far concluded four joint venture agreements with Chinese investors in which all the targeted projects have already started taking shape.
ZMDC is expected also to open a platinum mine operating as Global Paltinum Resources in conjunction with a foreign company Orinonco on a 50-50 shareholding basis.
Southern Africa Economy, Business and Finance Mining
With Star Communications of China, ZMDC offered its Rutalachrome claims in the Great Dyke that will operationalise the deal between Transmedia Corporation of Zimbabwe and Hebei Broadcasting Station of China.
The two companies signed the National Transmission Coverage Network Project Agreement in March 2005.
After failing to meet its foreign currency obligations for the project, Transmedia approached the Ministry of Mines and Mining Development for support.
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