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Zimbabwe, Russia finalise deal for $4bn platinum mine

26th April 2019

By: Bloomberg

  

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Zimbabwe has signed an agreement with Russia to build a new platinum mine in the southern African country, finalising a deal that had stalled since 2014.

A deal to develop a new platinum group metals mine on a prospect held by Great Dyke Investment, a company jointly owned by a Russian State- controlled company and Zimbabwe’s government had been sealed, Polite Kambaruma, the nation’s Deputy Mines Minister said. The deal had not progressed since an initial agreement in 2014, Kambaruma said, declining to disclose the shareholding structure. He said the mine and associated infrastructure would cost $4-billion.

“Two weeks ago, we finalised the agreement and the Russians are ready to [be] on the ground,” Kambaruma said in an interview on the sidelines of a conference in Johannesburg.

The mine would be built on one of the largest platinum mining concessions in the country. Egypt-based Afreximbank might raise $2-billion to finance the building of the mine and a smelter at the project, the State-owned Herald newspaper reported last year.

Edited by Bloomberg

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