The Sunday News
Midlands Correspondent
CHINESE company — China Beijing Pinchang — which sealed a deal with the Government to take over operations at Kamativi Mine in Matabeleland North Province from ZMDC last year, is still committed to see through the transaction despite teething problems that had seen take off delayed.
The company signed the $102 million deal to revive the mine last year but officials felt there were some amendments that needed to be done resulting in representatives of the Chinese company going back to sort out the concerns.
However, Mines and Mining Development Deputy Minister Fred Moyo said the Chinese company had left the country to rectify and alter some of the terms of the agreement and has promised to come back once everything was in order.
He said some of the issues which needed clarification were not major and could not stall the revival of the tin mine.
“Kamativi will not resume operations immediately, remember the last major undertaking was due diligence which was done in China.
“There were some questions that we raised and some issues that we needed clarified but as we speak the Chinese have gone back to try and deal with some of the issues that we raised but they are not major.
“Once everything is signed off the first port of call is to look at the dump and we agreed that they are supposed to buy it off from ZMDC and cleaning up of the plant, geology and everything, it will take time. The Chinese are still interested in the deal and that is a big project in that it is one of our biggest resources in the country and in a growth sector.
Remember there is lithium and the world is desperate for that resource. There are a lot of minerals there and it is one of Zimbabwe’s best assets,” he said.
Kamativi Mine which is one of the largest tin mines in Zimbabwe and estimated to have reserves amounting to 100 million tonnes of tin, ceased operations in 1994.
The Government finalised the deal last year with China Beijing Pinchang which will see the Chinese company taking up 49 percent of the company while ZMDC will have a controlling stake of 51 percent.
Under the deal China Beijing Pinchang will be mining tin, lithium, tantalite, beryl, copper and beryllium and will also set up a refinery at the mining site for the minerals.
The Matabeleland North-based mine was opened in 1936 and shut down in 1994 after international tin prices fell to levels that rendered operations unviable.
The price depression emanated from the devastating tin price crash in 1985 when overnight, the price crashed from about $18 000 per tonne to less than $3 000.
According to the ZMDC, between $35 million and $50 million is needed to resuscitate operations at Kamativi.
A tonne of tin currently fetches between $17 000 and $22 000 on the international market.
