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The newly formed Government exploration company, The Mining Promotion Corporation, has been mandated to find new mineral deposits which the Government can use as security for fresh lines of credit, a cabinet Minister has said. The MPC has already been resourced up to board level and has been financed to the tune of $5 million to enable it to commence operations.

Zimbabwe, whose economy buckled under Western-imposed illegal sanctions, is struggling to attract Foreign Direct Investment and long term funding to ease liquidity challenges that it is facing.

The country needs a comprehensive financial package to finance the multi-billion dollar economic blueprint the Zimbabwe Agenda for Socio-Economic Transformation, which was crafted to guide economic development from 2013 to 2018.

Due to its huge external debt, estimated at $10 billion, international financiers including the IMF and World Bank are refusing to extend new lines of credit to Zimbabwe.

Mines and Mining Development Minister Mr Walter Chidhakwa told recently appointed members of the exploration company one of its main priorities would be to find mineral deposits that the country would use to guarantee loans.

“In short, you are being mandated to know all about the deposits of our mineral wealth so that we can all decide how to take advantage of our resources. Identified deposits will be used for securitisation of national loans and credits,” he said.

China, one of Zimbabwe’s biggest financiers over the years, is reported to have indicated that it wants the country to use its mineral deposits to guarantee any future loans.

Beijing and Harare are currently negotiating what Finance and Economic Development Minister Patrick Chinamasa termed “a comprehensive financial package.” – New Ziana.