Mashava Mine mobilises $14m recapitalisation

18 Feb, 2018 - 00:02 0 Views
Mashava Mine mobilises $14m recapitalisation cash

The Sunday News

cash

Walter Mswazie in Mashava, Masvingo
THE defunct Mashava Mine in Masvingo is set for re-opening after management mobilised about $14 million of the $52 million needed for its full recapitalisation.

Once in operation, the company will create about 1 400 jobs in the next 17 years before any further exploration. The mine has over 17,7 million tonnes of ore reserves with a potential value of $790 million at present price, on the world market.

Speaking during a tour of the mine by Minister of State for Masvingo Provincial Affairs, Senator Josiah Hungwe last week, Shabanie and Mashaba Mines chief executive Mr Chirandu Dhlembeu said the asbestos mine had a potential to contribute immensely to the province and national economy, once it starts operations.

He said the demand for asbestos was still high. With some traditional producers having stopped from producing long fibre, Mr Dhlembeu said there was a ready market for Zimbabwe asbestos.

“We only need $20 million to kick start operations at Mashava Mine. We would be operating at 50 percent capacity due to financial constraints then increase as we get fully recapitalised,” he said.

Mr Dhlembeu said the company needed about $52 million funding to reach capacity utilisation and hoped management would achieve the target on the back of positive investment climate under the new political dispensation.

“Before any further exploration the ore, which is at King Mine here in Mashava will enable us to produce 75 000 tonnes of fibre per year. This will be for the next 17 years in operation and the total budget is $52 million.

“Potential foreign currency generation for the country will be $45 million per annum. With the new dispensation led by President Mnangagwa will see Mashava Mine returning to its former glory and saving many lives,” he said.

Mr Dhlembeu said the asbestos ore at Mashava Mine had many other minerals that can be tapped to support its full recapitalisation efforts. He said the mine has other mineral resources in the asbestos dumps such as magnesium, chrome and others that can generate millions of dollars per year.

“We have nickel, chrome and manganese seams within Mashava. We also have our dumpsite where we can produce the fibre that we want and we will be able to export to raise the much needed foreign currency. We have also raised some of the capital from our tenants and Great Zimbabwe University to the tune of $14 million. We are working on selling residential land and we will raise more money towards the full resuscitation of mining activities,” he said.

Senator Hungwe praised Mashava Mine staff for its efforts towards the resuscitation of the mine.

“I am happy with the strides that you are making to resuscitate our mine and see it working again. President Mnangagwa has asked us to identify areas we feel need to be resuscitated for our people to get employment here in Masvingo and Mashava is our first company. We also have Cold Storage Company,” said Minister Hungwe.

He said CSC will be bankrolled by the National Social Security Authority very soon.

“CSC will be bankrolled by NSSA and I am told by the management of the company here that it needs about $14 million,” he said.

Presently Mashava Mine is on the first phase of its turnaround plan and the company is pumping large volumes of water from the shafts. Management say it will take at least one year to clear water from underground.

Available information shows that the world consumes at least 1,2 million tonnes of asbestos per year and that demand normally outstrips supply.

Canada stopped production of asbestos in 2010 while Brazil will decommission their mines next year leaving a supply gap of 350 metric tonnes of fibre.
-@walterbmswazie3

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