Kuvimba Mining House, the newly created mining company, will seek to raise US$1 billion to recapitalise its assets, which it hopes will generate an ambitious US$1.5 billion per annum by 2023.
Kuvimba Mining is an amalgamation of government-owned and private investor-owned assets.
Government is a 65% shareholder through some of its State-Owned assets and through debt-to-equity structures while the remainder is owned by international and local investors, who include Sotic International. The private investors have management control.
However, chief executive David Brown told FinX that the company structure was still being finalised as part of a restructure that saw Government come in as 65% shareholder while Mines Minister Winston Chitando said he would soon issue out a statement.
Brown said US$1 billion capital would be raised through debt and internally generated resources.
“Debt talks are already underway and advanced.” The group will also seek a listing on the Victoria Falls Stock Exchange.
Separately, Kuvimba will embark on an intensive 24-month exploration programme to establish its resource in all its mining assets, which will cost approximately US$25 million. This exploration will result in the extension of life of existing mines and result in the establishment of new mines.
Kuvimba currently has three operating gold mines (Freda, Shamva and Jena) which are producing approximately 300 kgs of gold per month while its operating nickel asset, Bindura Nickel produces about 550 tonnes of nickel per month. It also runs the Darwendale platinum project, Zim Alloys as well as various mining assets which are in excess of 170 000 hectares.
Freda was previously owned by Asa Resources, Shamva was part of the Metallon Group while Jena was under ZMDC. Other ZMDC mines such as Elvington, Golden Kopje and Sandawana Mine are also in the structure. These mines are currently being evaluated to determine their production potential.
“As part of our aggressive growth plans, Kuvimba is in the process of acquiring other gold mines which we will announce as and when appropriate.”
Kuvimba’s total mined revenue currently stands at US$24 million a month with an expected annual revenue of US$250 million while the group is the largest gold producer, the only nickel producer, and is one of the top ten largest exporters in Zimbabwe.
Brown said Kuvimba Mining Group has set a medium-term vision to produce 500 000 oz per annum of gold, 7 000 to 10 000 tonnes of nickel, 200 000 to 240 000 tonnes of ferrochrome, and produce 295 000 ounces of 4PGE per year.
The group also seeks to generate US$1.5 billion per annum translating to 13% of government’s US$12 billion target.
Source – finx