By Business Reporter – Thursday 1 October 2020
ANALYSIS (Mining Index) – BUSINESS tycoon, Kudakwashe Tagwirei has in the past year acquired several mines, in gold and nickel, intensifying his footprint in Zimbabwe’s mining sector.
The business mogul, through his company, Landela Mining Ventures, is listed among over 20 individuals and companies awarded with a gold buying license by Fidelity printers and Refiners (FPR).
Earlier this year, Landela Holdings completed the takeover of Metallon Corporation’s Shamva gold mine, formerly owned by South African businessman Mzi Khumalo.
Also linked to Tagwirei is Sotic International, a commodities company based in Mauritius, which bought UK-listed ASA Holdings’ now controlling a 74.13 percent stake in Bindura Nickel Corporation (BNC).
Landela also bought Bindura’s Freda Rebecca mine, an operation formerly owned by ASA Resources.
In June this year, Tagwirei took over Sabi Gold Mine in Zvishavane, and cleared an outstanding salary backlog amounting to US$2.8million.
It has also been brought to the limelight the businessman is eying acquisition of seven more mines from state-owned Zimbabwe Mining Development Corporation (ZMDC) and Metallon Corporation, to be incorporated under the Landela umbrella.
In July this year, it was reported Landela had reached agreements to acquire and resuscitate four idle gold mines under ZMDC.
Since 2014, most of ZMDC’s mining projects in diamond, gold, tin, copper, emerald and platinum, limestone mining and processing, coal and coal bed methane mining, tantalite mining and processing and graphite have been lying idle due to a myriad of reasons, including financial constraints and lack of markets.
Some of the ZMDC mines include Sabi Gold Mine; Shabanie Mashaba Mines (SMM Holdings); Mhangura, Alaska and Sanyati copper mines; Lomagundi, Smelting and Mining (Pvt) Ltd, Kamativi Tin Mines, Sandawana Mines, Jena Mine, Elvington Mines,
Furthermore, Landela is said to be in concluding agreements with Metallon to take over three of its idle mines.
Metallon, in April last year put three of its mines Shamva, Mazowe and Redwing under care and maintenance owing to mounting debt.
Redwing with a JORC-compliant resource of 2.6 million ounces was in 2018 projected to increase annual gold production to 200 000 ounces. Shamva at 2.5 million reserves was anticipated to produce 150,000 ounces while Mazowe with 1.8 million reserves was forecasted to increase annual production to 93,000 ounces. ENDS// www.miningndex.co.zw
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