Kuvimba in +US$300m BOT deal for Sandawana, Mutapa nearing end of assets review

HARARE – Kuvimba Mining House, a mining investment company with assets in gold, bulk metals, PGMs, and energy minerals has attracted financial investment for Sandawana Mines.

Kuvimba a subsidiary of Mutapa Investment Fund has signed investment agreements with leading foreign (British and Chinese) companies in the global lithium market.

As had been hinted earlier by Mutapa CEO John Mangudya on a previous article: Update: Sandawana Mines to pursue BOT or JV partnerships, KMH has signed a binding Build, Operate, and Transfer (BOT) agreement with the Chinese consortium for a 3 million tonne per year ore processing plant.

The plant is set to be commissioned within 18 months and shall generate an estimated US$600 million per year from a planned 600,000 tonnes of lithium concentrate. It is expected that a second plant shall be installed following the completion of a second round of exploration activities which are underway.

The BOT period shall be six years, during which period Sandawana employees shall be trained on operating the state-of-the-art processing equipment.

The consortium has committed to providing funding for the development of the mine, a concentrate plant and associated infrastructure (water, power, road, accommodation etc). The financing of the first plant is expected to be circa US$310 million which shall be disbursed within the next 18 months. The loan shall be paid back to the consortium during the BOT period.

According to Kuvimba Mining House acting Trevor Barnard (pictured below), ‘We are elated to have established these groundbreaking agreements with international entities. Kuvimba Mining House is on foot to become a world-class lithium processing company, with a strong competitive edge in marketing high-quality lithium concentrate. It is encouraging to see the growing trust and confidence in the Zimbabwean Minerals sector by the broad spectrum of investors. We are committed to mutual partnership of transparency, accountability, and efficient management of our local resources and this will underline the way we work.’’

Sandawana Mines has one of the largest lithium deposits in Africa spanning a 21km long strip along the Mweza Mountain Range in Mberengwa district Zimbabwe.

The former emerald mining company is also rich in Tantalite, Mica, and Gold.

Meanwhile, Mutapa Investment Fund (MIF) is nearing the end of a full diagnostic review of its portfolio companies. This comprehensive examination, led by CEO John Mangudya, aims to uncover important concerns and maximise the fund’s assets. The majority of the assets valuation is being done through BDO.

The fund was established last year and has 66 entities in its portfolio, including subsidiaries and state-invested enterprises, which are divided into five clusters to maximise benefits.

The assessment has entailed a thorough valuation of the assets of all entities under the fund’s umbrella, providing a market value that supersedes the current book value. This meticulous approach ensures a precise understanding of the fund’s current standing and informs strategies for future growth.

Mutapa CEO John Mangudya told FinX that, “We are almost through with the diagnostic assessment of all the portfolio companies under Mutapa Investment Fund which is the Sovereign Wealth Fund of Zimbabwe. This diagnostic assessment was necessary to determine the critical issues that you raised above. Thus, regarding the current asset base of the fund, we are almost complete with the valuation of assets of all the entities under the ambit of the fund. This is essential in order to provide the market value of the assets as opposed to the current book value.”

With a competent management team at the helm, Mutapa’s CEO is confident in achieving the fund’s vision of safeguarding Zimbabwe’s financial future, as the mission is clear: transform portfolio companies into commercially sustainable entities that generate long-term value for the nation.

As the diagnostic assessment nears completion, the stage is set for the Mutapa Investment Fund to emerge as a driving force in Zimbabwe’s economic development, fostering a brighter future for generations to come.-finx