Zimbabwe signs $4.2 billion platinum deal to overhaul mining sector

In a bid to transform its mining sector, Zimbabwe has signed a $4.2 billion deal with a Cypriot investor to develop a platinum mine and refinery in the country.

Zimbabwe mines minister Winston Chitando who signed the agreement with Cyprus base Karo resources said work would start in July with the first output of platinum expected in 2020.

The project t located in Mhondoro-Ngezi platinum belt, west of Harare will include a coal mine and a power station to produce electricity for the smelter and aims to employ 15,000 people when fully implemented.

President Emmerson Mnangagwa lauded the move and said it was a sign that the country was open for business.

Adding that the project was first mooted six years ago but held back by government red tape and other vested interests.

The mine aims to reach an output of 1.4 million, ounces per year within the next 3 years.

Zimbabwe holds the world’s second-largest platinum deposits but foreign investment had stalled during the latter years of former president Robert Mugabe’s reign.