Business / Companies
Kamativi tin mine to resume operations after 21 years
30 Aug 2015 at 10:24hrs | Views
KAMATIVI Tin Mine in Matabeleland North is set to resume operations after 21 years following the conclusion of a deal between Zimbabwe and a Chinese investor who is ready to pump in US$102 million to resuscitate operations.
The Chinese investor, China Beijing Pinchang was selected by Zimbabwe from a list of four other interested companies.
Kamativi, which is one of the largest tin mines in Zimbabwe, is estimated to be sitting on 100 million tonnes of the metal. In an interview soon after handing over mining equipment to small scale miners in Mberengwa and Zvishavane, Mines and Mining Development Minister Walter Chidhakwa said Government had finalised the deal with China Beijing Pinchang.
Under the deal, the Asian investor will assume a 49 percent stake while the Zimbabwe Mining Development Company takes 51 percent in line with Zimbabwe's indigenisation regulations. Minister Chidhakwa said under the deal, China Beijing Pinchang will extract tin, lithium, tantalite, beryl, copper and beryllium to be refined on site.
"We shortlisted four potential investors who had shown interest in reviving Kamativi Tin Mine and assessed them to see if they were capable and meet the minimum requirements," said Minister Chidhakwa.
"After the assessment we then settled for a Chinese company China Beijing Pinchang which has agreed to fully comply with the indigenisation laws. We signed an agreement that they will have 49 percent shares while ZMDC will own 51 percent."
The mine was opened in 1936 but closed in 1994 after international tin prices fell to levels that rendered operations unviable. The price depression emanated from the devastating tin price crash in 1985 when the tin price fell overnight from about $18 000 per tonne to less than $3 000.
International prices of tin are now pegged between $17 000 and $22 000. According to the ZMDC, between $35 million and $50 million is needed to resuscitate operations at Kamativi Tin Mine.
The Chinese investor, China Beijing Pinchang was selected by Zimbabwe from a list of four other interested companies.
Kamativi, which is one of the largest tin mines in Zimbabwe, is estimated to be sitting on 100 million tonnes of the metal. In an interview soon after handing over mining equipment to small scale miners in Mberengwa and Zvishavane, Mines and Mining Development Minister Walter Chidhakwa said Government had finalised the deal with China Beijing Pinchang.
Under the deal, the Asian investor will assume a 49 percent stake while the Zimbabwe Mining Development Company takes 51 percent in line with Zimbabwe's indigenisation regulations. Minister Chidhakwa said under the deal, China Beijing Pinchang will extract tin, lithium, tantalite, beryl, copper and beryllium to be refined on site.
"We shortlisted four potential investors who had shown interest in reviving Kamativi Tin Mine and assessed them to see if they were capable and meet the minimum requirements," said Minister Chidhakwa.
"After the assessment we then settled for a Chinese company China Beijing Pinchang which has agreed to fully comply with the indigenisation laws. We signed an agreement that they will have 49 percent shares while ZMDC will own 51 percent."
The mine was opened in 1936 but closed in 1994 after international tin prices fell to levels that rendered operations unviable. The price depression emanated from the devastating tin price crash in 1985 when the tin price fell overnight from about $18 000 per tonne to less than $3 000.
International prices of tin are now pegged between $17 000 and $22 000. According to the ZMDC, between $35 million and $50 million is needed to resuscitate operations at Kamativi Tin Mine.
Source - sundaymail
