Zimbabwe’s state-owned Kuvimba Mining House is actively seeking equity partners and financiers to bolster capital for its gold and lithium mining projects. Managing Director Patrick Maseva-Shayawabaya revealed the company’s plans during a recent tour of the Freda Rebecca gold mine, located approximately 97 kilometres (60 miles) north-east of the capital, Harare.
Kuvimba is considering selling a 40% stake in the Shamva Gold Mine, one of Zimbabwe’s oldest mining establishments. However, Maseva-Shayawabaya emphasised that the company is not looking to relinquish a majority shareholding in the venture. “We could accept someone who could take a big chunk (of shareholding in Shamva) but not a majority stake,” he stated. The discussions are still in preliminary stages, and specific partnership structures have yet to be determined.
The capital raising initiative aims to secure around $150 million for the development of an open-cast mine at Shamva, alongside the construction of a new processing plant. Additionally, Kuvimba seeks investors to extend the operational life of the Freda Rebecca mine beyond its current five-year outlook.
While equity partnerships are preferred, Maseva-Shayawabaya noted that financing could also be facilitated through debt instruments. However, he refrained from disclosing the identities of potential investors currently in negotiations with the company.
Kuvimba is also finalising discussions with prospective partners to fund a lithium plant at its Sandawana mine. This follows an announcement in May regarding one of Kuvimba’s assets, Bindura Nickel Corporation (BIND.VF), which was placed under administration. The nickel mining operation faced significant challenges after an underground equipment failure in September halted production.
Kuvimba’s gold mines reported an output of approximately 95,000 ounces of gold last year. The firm’s strategic move to attract investment and expand its mineral production capabilities is seen as a pivotal step in leveraging Zimbabwe’s rich natural resources.
