Investor interest continues growing

22 Jun, 2018 - 00:06 0 Views
Investor interest continues growing

eBusiness Weekly

Martin Kadzere
A Mauritius-based company intends to invest nearly $5 billion to develop coal bed methane (CBM) wells and a power station in Binga, south of Lake Kariba, a top industry source said.
To operate as Emalahleni Energy, Proteas Ventures of Mauritius owns 51 percent equity in the local outfit while local partners, Tanaka Energy, the holder of vast concessions in Binga and Todala Family owns 30 percent and 19 percent respectively.

The investment involves the development of CBM wells, construction of a 600 megawatt power plant and an integrated plant to produce gas and fertiliser in Kwekwe.

A pipeline to link the CBM wells and the Kwekwe integrated plant will also be constructed. “The target is to have all approvals before end of third quarter to get on the ground,” said one source, who declined to be identified, told Business Weekly.

Negotiations for offshore facilities worth $2,8 billion were underway with financiers in Europe, another source said, but declined to provide more details. Upon completion, the projects are expected to create nearly 4 000 jobs-both skilled and unskilled.

Zimbabwe is host to more than 40 exploitable minerals and is seeking to attract foreign investment to rebuild its economy battered under the 37-year rule of former president Robert Mugabe whose policies were blamed for inhibiting the FDI.

The government has already put in place measures to create conducive business environment, including repealing the indigenisation law, which required foreign owned companies not to own more than 49 percent stakes in businesses including mines.

The law now limit the majority ownership of to only diamond and platinum mines as the government is developing guiding frameworks for the two minerals.

Parliament recently passed the Mines and Mineral Amendment Bill, which seeks to attract investments.

The principal Act governing the industry was first crafted in 1961 and amendments were in 1996.

As a result, a number of issues have arisen in the sector and needs to be addressed through policy reform including the investment environment, fiscal mining regime, new administrative measures, balancing of interests of persons involved or affected by mining operations and corporate governance issues.

The 2015 survey by an international mining research centre, the Fraser Institute, listed Zimbabwe at the bottom 10 of the least attractive destinations for investment.

This was attributed to unclear and inconsistent policies pertaining to the mining industry.

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