The Sunday News
Kuda Bwititi, Harare Bureau
President Emmerson Mnangagwa’s visit to Russia has unlocked $300 million that will trigger implementation of the $2 billion Great Dyke Investment (GDI) platinum mining venture in Darwendale.
GDI officials told our Harare Bureau that the project will be one of the top five platinum mines in the world, adding that, the investment was certain in light of several agreements signed by President Mnangagwa in Russia.
Massive infrastructure development is now earmarked to take place in the Darwendale area this year with state-of-art equipment set to be established on site.
The US$2 billion project is one of the biggest mining investments in the country since independence and is expected to create 8 000 jobs at its peak.
During his visit to Moscow, President Mnangagwa and Russian counterpart President Vladimir Putin discussed and agreed on implementation strategies for the venture, giving fresh impetus to the project.
In an interview, Mines and Mining Development Minister Winston Chitando said funds for the project will be availed with immediate effect following President Mnangagwa’s meeting with President Putin.
“As you aware, our President met the Russian President. As a result of that high level meeting, there was a massive boost for Great Dyke platinum as the investors made an undertaking to release about US$300 million. What is important to note is that the money was availed immediately and it is ready for immediate drawdown.”
Minister Chitando said the funds will enable the company to buy state of the art equipment to enable effective implementation of the project by June.
In an e-mailed response, GDI chair Dr Hespina Rukato said a number of agreements were signed in Russia to facilitate implementation of the project. Among the signed documents include a licence agreement with the Ministry of Mines and Mining Development, Memoranda of Understanding with the African Export-Import Bank (Afreximbank), African Finance Corporation (AFC) and Russian Export Centre (REC).
“The MOU with Afreximbank envisages provision of a direct credit line facility for the Project (project financing) in the amount of US$151 million and additional US$41 million as part of the credit line facility for formation of working capital required at launch of production and sales of commercial products.
“The MOU with the AFC provides for equity interest of the Corporation in the Darwendale Project in the amount of up to US$ 75 million.”
Since it’s commissioning, the project has undergone large-scale geological exploration, complex ore studies and results of a 2017 Bankable Feasibility Study show that reserves for mining in the first phase are estimated at 7,8 million ounces, or 240 tonnes of PGM and gold.
