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Australian owned gold mines acquired by Kuvimba mining

by Simbarashe Mwandipendaa
07 Jan 2021 at 13:51hrs | Views
Finance and Economic Development Minister Professor Mthuli Ncube said the government has given Kuvimba Mining House the nod to acquire Globe and Phoenix Gold Mine and other associated mines owned by an Australian company called Biometallurgical (pvt) Ltd in Kwekwe, as the mining giant intensifies efforts to resuscitate mines that have been lying idle in the past years.

The other mines are Tiger Reef Mine, Primrose Mine and Club mine.

Ncube further highlighted that the Government was working on achieving a $12 billion mining sector by 2023.

He clarified the shareholding of companies that fall under Kuvimba principally Shamva Gold Mining saying it was 100 percent owned by Kuvimba Mining House, a joint venture between Government (65 percent) and international partners led by Mr David Brown (35 percent). This dispelled reports that businesses tycoon Kudakwashe Tagwirei is part of Kuvimba Mining House and a further check with the Registrar of Companies show that Tagwirei is not part of the shareholders in companies that fall under the mining house.

"Government has been informed by the management of Kuvimba Mining House that it has made an offer to acquire Globe and Phoenix Mine," Prof Mthuli said.

"Government as the majority shareholder in Kuvimba has endorsed this transaction and looks forward to this new asset contributing to the group. Kuvimba's performance will contribute immensely to the achievement of a US $12 billion mining sector by 2023." Globe and Phoenix Mine is located in Kwekwe.

Since the 19th century, it has produced over 4.2 million ounces of gold at an average grade of 27.6 grams per ton coming second to Cam and Motor mine.

The mine, which has been idle for the past 12 years, will make a very significant impact on the infrastructure and life of the town of Kwekwe.

Giving a breakdown on the shareholding of Kuvimba Mining House, Prof Mthuli dismissed reports that business tycoon Kudakwashe Tagwirei is part of the puzzle.

A check at the company's documents at the Registrar of Companies does not show Tagwirei amongst the shareholders in companies that fall under Kuvimba.

"Shamva Gold Mine is owned 100 percent by Kuvimba Mining House. Kuvimba is owned 65 percent by government of Zimbabwe, and 35 percent owned by Management and international partners, who are led by Mr David Brown, a world-class mining executive and mining entrepreneur, " he said.

"The 65 percent Government shareholding is split as follows: Government pension fund, War Veterans Fund, Pensions Compensation Fund (to compensate Pensioners for loses due to Feb 2019 currency reforms), Depositors Compensation Fund(to compensate depositors who had $1000 and below in banks when currency reforms took place in Feb 2019), Youth Support Fund(administered through National Venture Fund), Women's SME Support Fund (administered by National Venture Fund) and Sovereign Wealth Fund, for future generations administered by government."

Mr Brown said Kuvimba has operating assets that would contribute significantly to the country's economic growth.

He also dismissed as baseless reports that Tagwirei was a shareholder. "Tagwirei is not a shareholder," he said. "Kuvimba Mining House has three operating gold mines under Freda Rebecca namely Freda Rebecca Gold Mine, Shamva Gold Mine and Jena Mine. The nickel operating mine is Trojan Nickel Mine under Bindura Nickel Mine while the platinum asset is the Darwendale Platinum project operating under Great Dyke Investments. We also have the chrome venture which is Zimbabwe Alloys Limited. "

Kuvimba is resuscitating idle mines countrywide, creating thousands of job in the process. The reopening of Shamva Gold Mine saw more than 800 employees being taken on board.

Source - Simbarashe Mwandipendaa