Zimbabwe will finalise amendments to its mines act that have been in abeyance for 17 years in the coming few months as part of the government’s drive to create regulatory certainty and attract mining investment, Mines and Mining Development Minister Winston Chitando said last month. That has to happen as this sector is largely moribund, under-capitalised and old fashioned due to poor regulatory decisions.
Zimbabwe’s leadership change has sparked a race for the nation’s mineral riches among entrepreneurs and small explorers, with big-name mining companies generally taking a wait-and-see approach.
But the capital requirements are certainly too big for our average IZB client, our clients are not in the league of developing mines! That being said, some companies are steaming ahead. Government says mining commitments reached as much as US$6bn since Mnangagwa’s appointment, including a record US$4.2bn pledge from a company linked to mining entrepreneur Loucas Pouroulis for a platinum mine and infrastructure. Likewise privately-owned African gold producer and exploration company Metallon Corporation believes that Zimbabwe’s new political dispensation will open up the doors to the much needed financial support so desperately lacking in the southern African countryand the company begun executing major growth projects at its four operating underground gold mines (Bulawayo Mining Company's How Mine, Goldfields Mazowe mine, King’s Daughter Mining Company's Redwing mine and the Goldfieldfs of Shamva mine) – the realisation of which will see the producer increase its gold production five-fold in the next four years.
Last year’s coup and seismic political shift in Zimbabwe from dictatorship to fledgling democracy has seen small cap Interpose Holdings announce a planned buyout of Invictus Energy Resources and its flagship Cabora Bassa project based in Zimbabwe’s far north .Interpose has agreed to pay US$500,000 for an 80% stake in the Cabora Bassa project and plans to conduct a supplementary USA$4.5 million capital raising over the coming months to develop what could potentially turn out to be the largest gas-condensate prospect in Africa. AIM listed Vast Resources’ in April 2018 announced 25%-owned group company Dallaglio Investments has acquired a 95% interest in the Eureka gold mine.
Dallaglio acquired a 95% interest in Delta Gold Zimbabwe, which owns the Eureka mine, from Alpha Resources and the Industrial Development Corporation of South Africa, thereby providing Vast with an indirect 23.75% interest in Eureka.