MEIKLES Limited is anticipating the first of its mines to be operational by next year following finalisation of its joint venture with Afghanistan-based investor Centar Mining Group.
Report by Gamma Mudarikiri
In a notice dated June 24, Meikles said it had formed a new company Meikles Centar Mining, which will explore opportunities in gold, tantalite and iron ore and operations in the first mine were expected in 2014.
The new company will be controlled by Meikles to ensure that the entity is compliant with the Zimbabwe’s indigenisation laws, while the group will be seeking shareholder approval in the coming annual general meeting, with regard to venturing into the new mining business.
“At the forthcoming Meikles annual general meeting, shareholder approval will be sought to include mining resources in the business of the company,” part of the notice reads.
According to the notice, Centar is a mining company founded by Ian Hannam and Jan Kulczyk and supported by a number of prominent and highly experienced investors from countries including Thailand, Indonesia, Poland and Kazakhstan.
The company was founded initially to develop mining assets in Afghanistan and employs more than 500 local staff, supported on the ground at any one time by 15 expatriate technical experts, the majority of whom are Zimbabwean nationals.
Part of its businesses includes Afghanistan Drilling and Exploration Services Company and Afghanistan Mineral Assay laboratory.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
It also includes a company that is now exploring a gold prospect in the north of the country. The company is short-listed in a government tender as the preferred candidate to explore and develop two copper exploration licences and a joint venture with a Turkish Mining Company that has itself been short-listed to develop four more gold exploration licences there.
Meikles group posted a profit of $6,5 million in the year ended March 31 2012 from a loss of $5,4 million in 2011 buoyed by a growth in revenue. Earnings before tax depreciation amortisation for continuing operations stood at $8,9 million.
However, net borrowings rose by $14,3 million to $59 million, including a long-term debt of $7,4 million.
