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MINES and Mining Development Minister Walter Chidhakwa says the country’s international bond to raise finance for mining development will be leveraged on the strength of cash flows of companies where Government has shares particularly in the diamond sector. In an interview with FinX, Minister Chidhakwa said the modalities are being discussed with the Ministry of Finance who are naturally the drivers of any Government bond.

“Treasury officials are working out the cash flows to ascertain how much can be secured.”
“This means the discussions will have to happen with few selected companies where Government has got shares, to say how much money can be generated with those companies particularly in the diamond sector.

He added that the bond is not necessarily going to be secured by minerals but with the companies’ ability to generate cash.
“We need to have funding that is secured; we can’t be poor when we have the resources to use to raise other resources.”
Minister Chidhakwa could however not ascertain how soon the bonds will be floated.

Meanwhile, according to the Platinum Producers Committee, the platinum industry needs as much as US$5,3 billion to expand production to more than 500 000 ounces of the metal and to construct precious and base metal refineries. – FinX..