Business / Economy
Zimbabwe mining sector in US$1 billion deal
17 Jun 2011 at 14:04hrs | Views
The mining industry is expected to conclude a US$1 billion revolving facility from developmental banks towards the recapitalisation of mining firms and restoration of normal operations within the sector.
Developmental banks such as the PTA Bank, Afreximbank, African Development Bank and Development Bank of Southern Africa have pledged at least US$1 billion to the country's mining sector.
Government through the Ministry of Mines and Mining Development is expected to conclude the strategic transaction with the banks on behalf of the mining companies.
Zimbabwe Miners Federation president, Mr. Trynos Nkomo also confirmed that the multilateral financial institutions have pledged to assist in the revival of the mining sector.
The mining sector is experiencing funding constraints amid calls by stakeholders for Government to assist in the revival of closed mines at a time when the sector has in the past two years registered positive growth rates of between 25 % and 33 % on the back of a projected 40 % growth by year end.
According to the Chamber of Mines, mineral commodities such as gold, platinum, coal, nickel and diamonds are this year expected to contribute positively to the mining sector's growth.
Developmental banks such as the PTA Bank, Afreximbank, African Development Bank and Development Bank of Southern Africa have pledged at least US$1 billion to the country's mining sector.
Government through the Ministry of Mines and Mining Development is expected to conclude the strategic transaction with the banks on behalf of the mining companies.
The mining sector is experiencing funding constraints amid calls by stakeholders for Government to assist in the revival of closed mines at a time when the sector has in the past two years registered positive growth rates of between 25 % and 33 % on the back of a projected 40 % growth by year end.
According to the Chamber of Mines, mineral commodities such as gold, platinum, coal, nickel and diamonds are this year expected to contribute positively to the mining sector's growth.
Source - Byo24News
