Chinese investor, Beijing Pinchang Investments, has settled a dispute with the Zimbabwe Mining Development Corporation (ZMDC) and is set to take a 49% ownership stake in the defunct Kamativi tin mine in Zimbabwe’s Matabeleland north province in return for contributing over $US100 million for the redevelopment of the mine.
It was reported in October this year that the deal had collapsed after the ZMBC expressed dissatisfaction with the Chinese investor. Local news sources reported comments from Zimbabwean minister, Walter Chidhakwa, that the investor had initially wanted a 65% stake in the mine, in conflict with the government’s indigenisation policy, which stipulates that foreigners can only own 49% of any business.
It has also been reported that the ZMDC has now started work with Beijing Pinchang on preliminary development activities with the Chinese investor releasing $1 million to fund work on the ground. Chidhakwa has stated that 6 geologists and metallurgists are currently at the site carrying out tin by-product valuations and feasibility studies. He added, “Apart from extracting tin, lithium, tantalite, beryl, copper and beryllium, the venture provides for the construction of a refinery at the mining site.“
ITRI View: Kamativi, which reportedly has 40 Mt of open cast tin resources, has been mothballed for two decades since closing due to low tin prices in 1994. While the settlement of the ownership dispute and news that active development work is now taking place at the site is positive, we remain cautious about prospects to the full redevelopment of the mine because of the lack of progress following similar announcements made by the Zimbabwean government about the project in the past. The government has also insisted that any attempt to re-open Kamativi must include plans for the extraction of the multiple tin by-products present at the site, which is likely to present additional technical barriers and cost during the development process.
