TWP Investments, a South African company, is exploring opportunities to invest in Zimbabwe’s mining industry in a major boost for the sector that is crying out for funding.
Mining requires huge capital outlays and has a long gestation period meaning that investors have to wait longer to recoup their investments.
Dean Cunningham, TWPI chief executive officer said the company has a specific interest in gold, rock phosphate, chrome, coal and nickel projects.
He said they were inviting submissions from interested parties who are either involved in active mining or who require capital for expansion strategies or brownfield projects.
Brownfield projects are those that have been abandoned, idle or under-used.
“We are inviting any interested parties requiring funding for viable processing projects, specifically gold dumps.
“Processing of these dumps will not only have the benefit of extracting the available ore, but it will also address the environmental risks these dumps pose, especially in areas where agriculture and mining co-exist,” Cunningham said.
Asked how much they had earmarked to invest in Zimbabwe, Cunningham said: “The economics of the project will dictate the investment and the amount.
“Should the project be significantly appealing then we would look at it and the risk return”
He said the ventures would “be backed by the Export Credit Insurance Corporation, a South African state-owned export credit agency that provides foreign investment insurance cover against political and commercial risks.”
The proposed investment comes at a time when other investors are giving Zimbabwe a wide berth over empowerment laws which say that businesses worth over US$500 000 should be 51% owned by locals in five years.
Cunningham said it was generally accepted by the global investment community that empowerment must take place within exceptable structures.
“Deviation from these acceptable norms would then be negative.
“Both partners must add value to the table; it should not just been seen as a pure free carry, but value adding and the start-up capital repaid first before dividends are paid,” he said.
“In the greater scheme of things, it’s about building a country, creating employment and having a sustainable business opportunity that is legally secure.”
TWPI’s financial and technical professionals specialise in project evaluation and funding across the full spectrum of resources and commodities, from exploration and development, through to beneficiation and processing of metals and minerals.
The company is a wholly-owned subsidiary of engineering and infrastructure consultancy TWP Holdings, which provides engineering, procurement and construction management services to the mining industry via its biggest subsidiary, TWP Projects.
In December 2009, TWP merged with construction giant Basil Read, enabling TWP to also offer engineering, procurement and construction /turnkey services to its clients.

BY OWN STAFF

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