Just a year after Zimbabwean government took the control of Kuvimba Mining House Ltd, the state’s mining company, a fresh bidding is planned in search of a developer to kick-start a range of the country’s mineral assets projects.
According to Trevor Barnard, the new chief executive officer at Kuvimba Mining, the state is looking to development banks, mining companies and traders to raise $950 million to develop lithium, platinum and gold assets.
“Access to major development banks, funding sources, and leading traders has just opened up,” said Barnard, without naming the potential financiers. He described the change in ownership structure as “a highly beneficial move for Kuvimba,” said Barnard in an interview.
Previous efforts to secure funding were impeded by speculation regarding the undisclosed identity of private investors, who owned roughly a third of the company. Earlier attempts to launch an initial public offering and establish a partnership with Russian investors were also abandoned.
Kuvimba’s key assets were previously controlled by companies linked to Kudakwashe Tagwirei, a businessman with political ties, according to a Bloomberg report from 2021.
Tagwirei, a former adviser to Zimbabwe’s President Emmerson Mnangagwa, has been sanctioned by the US and the UK for alleged corruption. Kuvimba has consistently denied that he ever had a stake in the company.
In 2022, Bloomberg reported that the government had considered assigning part of Kuvimba’s output to Trafigura Group as a way to settle an outstanding fuel debt.
According to Barnard, who assumed his role in December, more than half of the funds the company plans to raise will be allocated toward building an underground platinum mine at the long-delayed Darwendale project. The company’s lithium project, which could cost up to $275 million, may be developed more quickly, he noted.
The company has entered into a lithium joint venture with Chinese mining firms and plans to finalize the deal by March before moving ahead with the first phase of the Sandawana project.
Barnard stated that production will begin about 15 months after the agreement is signed, with the goal of reaching 500,000 tons of lithium concentrate annually. The Chinese partners will finance the project and transfer ownership to Kuvimba once the loan is repaid, a process he expects to take under five years.
Kuvimba also plans to develop a second area at Sandawana. Barnard mentioned that the company has already attracted interest from potential investors, including Cluff Africa Ltd. and a prominent European commodity trader, although he declined to name the trader. Additional Chinese investors are also expressing interest, and Barnard indicated that Kuvimba may finalize a deal within six to twelve months.
Cluff did not immediately respond to an emailed request for comment.
For the Darwendale platinum deposit, the company initially intends to develop a smaller open-pit mine this year, with an estimated cost of around $50 million. Barnard added that Kuvimba will hire another mining company to process the ore.
Kuvimba is currently in discussions with development banks to secure loans for financing its larger underground project and processing facilities, although no further details have been provided. The project is expected to begin within the next three years.
Zimbabwe holds the world’s second-largest platinum reserves, following South Africa, and is Africa’s leading producer of lithium.
Kuvimba is now 70% owned by the state’s sovereign wealth fund, the Mutapa Investment Fund, while the remaining shares are held by entities linked to the finance ministry, including state pension funds, power utilities, and a deposit insurance fund, according to Barnard.
