Chinese investor Beijing Pinchang is set to inject 100 million U.S. dollars into a tin mine in Zimbabwe in a deal that will see the company and Zimbabwe’s state mining entity jointly owning the firm, according to a Zimbabwean cabinet minister.
Mines and Mining Development Minister Walter Chidhakwa was quoted by the state news agency New Ziana as saying Tuesday that Beijing Pinchang agreed to a deal which would see it injecting 100 million dollars into Kamativi tin mine for a 49 percent stake in the joint venture with the Zimbabwe Mining Development Corporation (ZMDC).
The mine, which has been closed for 21 years, has around 40 million tons of open cast reserves and is considered one of the best tin mines around the world.
The minister said a team of six geologists and metallurgists were currently also on the ground carrying out valuations of other minerals found along with tin.
In terms of the agreement, the mine would be jointly managed in line with the shareholding structure.
Chidhakwa said though the ZMDC had strong balance sheet in terms of asset base and concessions compared to all mining companies in Zimbabwe, it had failed the nation due to under performance.
He said the ZMDC had several mining companies that were lying idle, which include asbestos mine and several gold mines.