Zimbabwe’s State miner, Kuvimba Mining House, wants to raise $950 million to develop lithium, platinum, and gold assets.
Bloomberg quoted Kuvimba chief executive Trevor Barnard as saying that the company will approach development banks, mining companies, and traders to raise capital.
“Access to all the large development banks, to all the funding, to all the major traders has just opened up,” he said without identifying the potential financiers.
Previous attempts to raise funding failed due to speculation over the undisclosed identity of private investors who held about a third of the company.
Attempts to hold an initial public offering and establish a venture with Russian investors also collapsed.
Kuvimba’s main assets were previously held by companies linked to Kudakwashe Tagwirei, a politically connected businessman.
Tagwirei was sanctioned for alleged corruption by the US and the UK.
Kuvimba dismissed allegations that he had a stake in the company.
The company is said to have agreed on a lithium joint venture with Chinese mining firms and will conclude the deal by March before proceeding to build the first phase of the project known as Sandawana.
Barnard said it will take about 15 months after signing to start production that will in the long run reach 500,000 tonnes of lithium concentrate per annum.
The Chinese partners will finance the project and transfer it back to Kuvimba once the loan is repaid, which he estimated would take less than five years.
Barnard said Kuvimba also plans to develop a second area at Sandawana and the company has already received interest from potential investors, including Cluff Africa and a major European commodity trader that he declined to name.
He said the company is also planning to initially develop a smaller open-pit mine this year at the Darwendale platinum deposit at a cost of about $ 50 million.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
