NIEEF re-evaluates RHA Tungsten involvement
THE National Indigenisation and Economic Empowerment Fund (NIEEF) is re-evaluating its ongoing involvement in the Zimbabwe-focused mining group, Premier African Minerals’ Matabeleland North-based RHA Tungsten project.
Premier holds 49 percent interest in RHA Tungsten mine while the Government, through the NIEEF, controls the remaining 51 percent.
Last year, Premier African Minerals announced that it had signed an agreement with NIEEF that would see Government advancing $6 million for production to commence at the RHA Tungsten project in Hwange.
Following a recent site visit to the RHA Tungsten project by Industry and Commerce Minister Dr Sekai Nzenza, on behalf of NIEEF, Premier has made submission of revised cost estimates, denominated in local currency, for RHA and other planned projects. The Aim-listed mining group noted that the need for NIEEF to re-evaluate its involvement in the Matabeleland North based mining venture was on account of escalating costs pegged in local currency.
“Following the visit (by Dr Nzenza), NIEEF requested until 11 March 2020 to evaluate the basis of its ongoing involvement with RHA following the submission by Premier of revised cost estimates, denominated in RTGS Dollars, for RHA and other planned plant improvements.
“Local costs in RTGS dollars are increasing at a rate substantially greater than implied by the official rate at which the RTGS dollar exchanges against the US dollar,” said Premier.
“NIEFF is expected to re-evaluate either providing additional funding for RHA in RTGS dollars reflecting these increased local costs, or varying the terms of the RHA shareholder agreement that would allow Premier to access alternative external funding, which in turn would provide for the escalating costs when expressed in local currency,” it said.
In July 2019, Government announced that it had deposited $6 million into RHA Tungsten mine’s bank account as part of its commitment towards an investment envisaged to revive production at the tungsten operation. Premier chief executive officer Mr George Roach was quoted as saying:
“I am deeply appreciative for this visit and the frank discussions with the honourable minister. The support we continue to receive from the Zimbabwean Government confirms the importance of this project.
“Pursuant to the above request by the minister, we have agreed to place mobilisation and commissioning on hold pending their review.” –chrnciecl.zw
