Business / Companies
Zimbabwe Mining Development Corporation in bid to revive Shabanie Mashava Mine
27 Feb 2013 at 13:06hrs | Views
Government's mining arm, the Zimbabwe Mining Development Corporation (ZMDC) says it has intensified the search for a strategic partner for the resuscitation of Shabanie Mashava Mine (SMM).
The parastatal, which took over the running of the asbestos mining concern, says it is in the process of scouting for equity partners for the resuscitation of the mine.
US$120 million is needed for the mine to become operational.
ZMDC General Manager, Engineer Jerry Ndlovu, who highlighted the strain by the asbestos mining company on the financial performance of the parastatal said ZMDC has no capacity to meet the capital requirements in the resuscitation process, hence the hunt for an investing partner.
"The parastatal has no capacity on its own to see the full operationalisation of the mining concern. Since we took over, we have attempted to bring sanity in the operations but the required amount is beyond the parastatal capacity and to that end, we are in the process of engaging strategic partners," he said.
Eng. Ndlovu said apart from engaging potential investors, the parastatal is also considering acquiring a credit line from both local and international financiers.
According to the ZMDC boss, the entity has however invested substantial amount in the upgrading of some section of the existing infrastructure including the refurbishment of the brittle plant at a cost of US$2 million.
Before suspending operations, SMM used to produce an estimated 200 000 tonnes of fibre every year.
If fully operational, SMM can employ thousands of people.
The parastatal, which took over the running of the asbestos mining concern, says it is in the process of scouting for equity partners for the resuscitation of the mine.
US$120 million is needed for the mine to become operational.
ZMDC General Manager, Engineer Jerry Ndlovu, who highlighted the strain by the asbestos mining company on the financial performance of the parastatal said ZMDC has no capacity to meet the capital requirements in the resuscitation process, hence the hunt for an investing partner.
Eng. Ndlovu said apart from engaging potential investors, the parastatal is also considering acquiring a credit line from both local and international financiers.
According to the ZMDC boss, the entity has however invested substantial amount in the upgrading of some section of the existing infrastructure including the refurbishment of the brittle plant at a cost of US$2 million.
Before suspending operations, SMM used to produce an estimated 200 000 tonnes of fibre every year.
If fully operational, SMM can employ thousands of people.
Source - zbc
