Zimbabwe Woos Australia Investors

 

To channel in more investors in the upstream and downstream industry, Zimbabwe is calling on Australia investors to invest in its mining sector which is playing a major role in its economic recovery.

This call was made by Zimbabwe’s Deputy Mines and Development Minister, Gift Chimanikire, at the Africa Down Under Conference in Perth.

Although, Zimbabwe’s mining sector grew by 25.8 percent in 2011 and contributed 13percent to the country’s GDP and more than 60 percent of its total earnings; Chimanikire call came at a time when the Zimbabwe’s mining industry is suffering from under-capitalisation.

Zimbabwe is therefore calling on Australia resource companies which are known for their investment in resources like coal, gold, iron ore and uranium; that are in abundance in the Southern African country.

Chimanikire revealed that Zimbabwe government is ready to enter a joint venture partnership with Australian investors and an open door policy has been given to such investment.

 “While the Government has provisions for local empowerment as part of any new investment deals struck, it is in an environment of ensuring community participation in the exploitation of our natural resources,” he said.

“We provide for mining companions to have the right to market their mineral directly, and there is no restriction on the amount of foreign currency that can be brought into Zimbabwe to crystallise new resources investment,” he added.

The minister however stressed that investments of more than US$100 million would qualify for special mining leases.

Speaking on the country’s vast resources, Chimanikire stated that “Of our more than 4,000 recorded gold deposits, nearly all of them are located on ancient workings, revealing inherent investment opportunities in vastly under-explored areas away from the ancient workings – even though more than 90% of Zimbabwe’s gold deposits are in greenstone belts associated with some of the richest gold mines in the world.”

“If I look at Australia-Zimbabwe commodity comparisons, Zimbabwe hosts large reserves of thermal and coking coal with some 29 locations hosting estimated resources of more than 12 billion tonnes of coal – yet more require capitalisation and therefore need a partner.

“We also have huge iron ore deposits, like Australia, with the lead deposits estimated to host more than 30 billion tonnes of iron reserves – yet most await full exploitation.

“And in uranium, we have done some minor work in the Zambezi Valley and that at a time of low prices so the global market presents good opportunity for uranium upside.”