Zimbabwe Seeks $950 Million in New Effort to Revitalize Mining Projects
Zimbabwe’s state-owned mining company, Kuvimba Mining House Ltd., is launching a new bid to raise $950 million a year after the government took full control of the firm. Under the leadership of CEO Trevor Barnard, Kuvimba is seeking funding from development banks, mining companies, and traders to advance its lithium, platinum, and gold assets.
“Access to large development banks and major traders has opened up,” Barnard said, though he did not specify potential financiers. He described the change in ownership as a positive move for Kuvimba, noting that earlier attempts to raise funds were hindered by uncertainty over private investors’ identities, who held around a third of the company. Previous efforts, including an IPO and a partnership with Russian investors, were also abandoned.
Kuvimba’s key assets were previously tied to Kudakwashe Tagwirei, a businessman with political ties to Zimbabwe’s president, Emmerson Mnangagwa, who has faced sanctions from the US and the UK for alleged corruption. Kuvimba has denied that Tagwirei had a stake in the company.
The company plans to allocate over half of the raised funds toward the development of an underground platinum mine at the delayed Darwendale project. The lithium project is expected to cost up to $275 million and may progress more quickly, Barnard stated.
Kuvimba has secured a joint venture with Chinese firms for the Sandawana lithium project. The deal is expected to be finalized by March, with production set to begin within 15 months, eventually reaching 500,000 tons of lithium concentrate per year. The Chinese partners will finance the project and transfer it back to Kuvimba once the loan is repaid in under five years.
The company also plans to expand operations at Sandawana, with interest from investors like Cluff Africa Ltd. and a major European commodity trader. Barnard expects a deal within 6 to 12 months.
At the Darwendale platinum deposit, Kuvimba will begin developing a smaller open-pit mine in the coming year, with an estimated cost of $50 million. The company will pay another mining firm to process the ore.
Kuvimba is also in talks with development banks for loans to fund the larger underground project and associated processing facilities, targeting a start date within three years.
Zimbabwe, home to the world’s second-largest platinum reserves and Africa’s largest lithium production, holds significant potential for these critical minerals. Kuvimba is currently 70% owned by the state’s Mutapa Investment Fund, with other entities including state pension funds, power utilities, and a deposit insurance fund owning the remaining shares.
