Published: 09 April 2018

TORONTO Stock Exchange-listed mining group, Chimata Gold Corporation, has applauded the President Mnangagwa-led administration for taking bold steps to reform the atmosphere of doing business and attract investment to Zimbabwe.

Chairman and interim chief executive, Mr Richard Groome, said economic prospects for Zimbabwe were positive, based on the sweeping reform processes since November 2017, when the new dispensation was ushered in following a peaceful political transition.

He said his group was as a result geared to expand its investment in the country. Chimata Gold Corp is already undertaking drilling works at the Kamativi Lithium Project in Matabeleland North and the project is set to unlock nearly $1, 4 billion and create up to 500 jobs.

"Following the resignation as President of Zimbabwe of Robert Mugabe in 2017, the newly-installed Government has moved to engage the international business community in general - and the mining sector in particular - by adopting pragmatic, sweeping pro-business, pro-investment policies," said Mr Groome in an update statement.

"The result is that there is far less political and investment instability associated with the new Government and its willingness to seek capital to rejuvenate the country's natural resource potential."

He said Zimbabwe has abundant mineral resources yet it is under-explored and under-developed due to almost non-existent investment in exploration, infrastructure, and operations over the last three decades.

Mr Groome said Chimata was "very encouraged" with the support of its local partners and the new Zimbabwean Government, particularly Mines and Mining Development Minister, Winston Chitando, and the local joint venture partners in the development of the Kamativi Lithium Project.

"With a view to growing Chimata in line with the new Zimbabwean Government's drive for resource development, the company will look to acquire additional assets in Zimbabwe as it believes it is in the right place, at the right time," said Mr Groome.

"In addition to lithium, the company will also seek out opportunities in cobalt, nickel, graphite and copper."

In February, Zimbabwe hosted a Mining Conference in Harare, which was well attended with delegates from around the world. The increasing focus on lithium in Zimbabwe was one of the highlights of the conference and resulted in the Kamativi Lithium Project being put on the "100-days Rapid Results Initiative" created by the new Government to expedite the development of mining projects in Zimbabwe.

Chimata says its current focus on Zimbabwe is a direct result of the corporate mandate to identify and develop projects covering an array of battery metals needed by electric vehicle manufacturers. The new Government has been very open in its positive view of lithium and other battery related metals. A delegation of Government officials recently visited the site in order to view the drilling activities and show its support of the project.

Prices of lithium have more than doubled in the past two years on forecasts for massive demand from the electric vehicle industry, which has sparked work on a flurry of new mines and expansion plans for existing ones. Zimbabwe is considered to be the fifth-largest lithium producer in the world after Australia, Argentina, Chile and China, although presently it produces only a fraction of the worldwide total output.
- zimpapers

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