TSA Press – Page 2804 – Thompson Stevenson & Associates

Tharisa Zimbabwe Asset Receives Special Economic Status – The Zimbabwean

Posted on 24th October 2019 by TSA Press

A 50,667-hectare area has been given the designation, miner Tharisa said, and is on bits of land covered by special mining grants to Karo Zimbabwe Holdings Ltd, of which Tharisa owns 27%.

The designation gives Karo some special incentives, such as reduced tax rates, duty-free importation of raw materials, and different exchange control rulings.

Tharisa Chief Executive Phoevos Pouroulis said: “Zimseza’s award of the special economic zone status to Karo’s license in Zimbabwe is a critical step in the development of what could become a world-class vertically integrated PGM operation. The Karo mine could transform the Zimbabwean PGM sector, bringing significant economic benefits to all stakeholders and building a long-term sustainable mining industry.

“The SEZ status, as well as the completion of the initial resource classification, are key milestones prior to investing in the various phases that a project of this scale requires for it to succeed. We look forward to working closely with Zimseza and the government of Zimbabwe, together with the local, regional and national stakeholders, as well as our financial partners, to bringing this project to fruition.”

Tharisa’s London shares were 0.9% lower at 109.50 pence each, and Johannesburg shares were 0.3% lower at ZAR19.59.

Post published in: Business

Former Implats head David Brown to lead Zimbabwe-Russia platinum joint venture – The Zimbabwean

Posted on 24th October 2019 by TSA Press

24.10.2019 7:52

by Business Live

Great Dyke Investments is seeking US$500m from Afreximbank to fund the projectGreat Dyke Investments

David Brown. Picture: ROBERT TSHABALALA

Russia-Zimbabwe joint venture Great Dyke Investments (GDI) says it is in talks with the African Export-Import Bank (Afreximbank) as well as Russian and South African investors to raise US$500m for its platinum project in Zimbabwe.

Zimbabwe is the world’s third-largest producer of platinum after SA and Russia.

The company says it is wrapping up financing for the project and expects to begin mine construction in 2020.

In 2017, a feasibility study by SA’s DRA Group showed “robust economics for phase one of the project, which was later complemented with a basic economic assessment confirming the economic potential of the full-scale three-phased project”.

Newly appointed GDI executive chair David Brown said, “There remains a lot of hard work to be done before we can commence development on the ground, but I am confident that the Darwendale project has the potential to become a significant low-cost platinum group metal producer, ultimately becoming a major part of the global PGM industry in the mid-term.”

Great Dyke Investments announced the appointment of Brown, a former CEO of Implats, on Wednesday.

Brown also served as Implats CFO from 1999 to 2006. He resigned from Implats in 2012 to pursue personal interests.

“Brown has a rich experience in platinum as he was instrumental in the development of Implats’ Zimbabwe’s asset, Zimplats, which is the country’s largest platinum miner,” GDI said.

In a statement Great Dyke vice-chair Igor Higer said the company plans to secure funding by March 2020.

“Peak funding for the Darwendale phase project is estimated at more than US$500m. The main financial partner of the project is the Afreximbank, which has been acting as the mandated lead arranger since early 2018.

“According to the agreement, Afreximbank’s mandate covers both debt for the project financing and equity raising portion in the amount sufficient for the successful implementation of phase one of the project.”

Higer said at a production rate of 3,5-million tons a year, GDI will produce an average of 280,000oz of PGM and gold at phase one, while the second phase will increase capacity to 10.5-million tons a year and PGM production of 860,000oz a year.

Zimbabwe is banking on ramping up platinum production as PGMs are earmarked to rake in US$3bn by 2023, in line with the country’s target of US$12bn annually from minerals.

Two other new platinum mines, Karo Mining Holdings, which is part-owned by SA’s Tharisa, and Bravura, owned by Nigerian billionaire Benedict Peters, have concessions to mine platinum in the country.

Post published in: Business

Zimbabwe: Severe Food Insecurity – The Zimbabwean

Posted on 24th October 2019 by TSA Press

24.10.2019 7:41

by ReliefWeb

English Infographic on Zimbabwe about Agriculture, Food and Nutrition, Drought, Flash Flood and more; published on 22 Oct 2019 by US DOS HIU

Download PDF (6.42 MB)

Across Zimbabwe food insecurity is growing, with an estimated 3.6 million rural Zimbabweans in need of humanitarian assistance (IPC Phase 3 or higher), an increase from the 2.3 million estimated between June and September 2019. Widespread drought — which led to a poor 2019 harvest — combined with Zimbabwe’s precarious economic conditions are contributing to low food availability, rising food prices, and very high inflation rates that are reducing purchasing power. Cyclone Idai exacerbated the situation by further disrupting cropping activities in eastern Zimbabwe. The volatile economy and the impending lean season (peak lean season January to March 2020) threaten to increase the number of food insecure Zimbabweans.

US Department of State – Humanitarian Information Unit:

https://hiu.state.gov/Pages/Home.aspx

Post published in: Agriculture

Zimbabwe celebrating Anti-Sanctions Day – The Zimbabwean

Posted on 24th October 2019 by TSA Press

In an unusual political move, the Zimbabwean government this week has declared Oct. 25 to be a national holiday to protest longtime U.S. sanctions against the Southern African country.

News of Zimbabwe’s anti-U.S. sanction holiday was reported by The Washington Post on Oct. 22. The Zimbabwean government said its Anti-Sanctions Day will specifically highlight the economic harm allegedly caused to the country by U.S. sanctions.

To celebrate the new national holiday, The Washington Post said Zimbabweans from around the country are expected to be transported to Harare, the country’s capital, to “march, watch a soccer match between the country’s two biggest teams and attend an all-night concert.”

President George W. Bush issued the first executive order to impose sanctions against Zimbabwe on March 6, 2003, as domestic violence in the country threatened to destabilize the region. The sanctions took aim at Zimbabwean President Robert Mugabe and his political associates.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) established the Zimbabwe Sanctions Regulations on July 29, 2004, which placed the sanctioned Zimbabweans on the Specially Designated Nationals and Blocked Persons (SDN) List. Placement on this list generally blocks the U.S. assets of these individuals and prevents U.S. persons from conducting business with them.

President Bush signed two additional executive orders to expand sanctions against the Mugabe regime on Nov. 22, 2005, and July 25, 2008, for “undermining Zimbabwe’s democratic processes and institutions.”

Zimbabwe’s current president, Emmerson Mnangagwa, who replaced Mugabe after he was forced from office in 2017, is also on OFAC’s SDN List.

The Zimbabwean government has argued that the country’s current economic hardships are largely due to the U.S. sanctions, which the U.S. has denied, stating that the sanctions “do not block the government of Zimbabwe as a whole, nor do they prohibit all business with the country of Zimbabwe or transactions involving that jurisdiction.”

On April 24, 2013, OFAC issued a general license to allow transactions involving Zimbabwe’s Agricultural Development Bank and Infrastructure Development Bank.

The African Development Bank Group said Zimbabwe still struggles with “protracted fiscal imbalances,” which keep most of the country’s population in poverty. However, the bank said the country can improve its economy through minimal additional investment and political reform.

“Given the vast natural resources, relatively good stock of public infrastructure and comparatively skilled labor force, Zimbabwe has an opportunity to join existing supply chains in Africa through the Continental Free Trade Area,” the bank said.