Closed Sabi Mine gets lifeline

THE Mines and Mining Development ministry has secured a $7 million grant to recapitalise Sabi Gold Mine in Zvishavane after it shut down recently due to financial problems.

ALLIEWAY NYONI
OWN CORRESPONDENT

Mines and Mining Development deputy minister Fred Moyo said the government had managed to secure the $7 million grant from an American organisation.

“I sourced about $7 million from an American company that I cannot disclose for other reasons. As you know, Sabi faced serious financial problems and there was no money for developing the mine,” he said.

Moyo said the grant would be given to the Zimbabwe Mining Development Corporation (ZMDC), which owns Sabi, for capacitating the mine before operations can resume.

“It is very important to know that there is a difference between mining and developing. Sabi needs money to develop the shafts in a process that may take three to five years before mining processes for production commence,” he said.

“Our funder has pleaded with ZMDC to have a neutral country for jurisdiction purposes.

“However, ZMDC was opting for Harare, but the American partner is refusing hence I will talk with the ZMDC to understand the funder’s plea as there is nothing wrong with settling matters in a neutral venue.”

Moyo said they were going to meet with the loan supplier, Reserve Bank of Zimbabwe (finance exchange process), CBZ Bank (banking transactions), ZMDC (Sabi management — recipient) and Finance ministry (guarantor) to finalise the deal by Thursday this week.

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