Mimosa not replacing Chitando Minister Chitando

Ishemunyoro Chingwere Business Reporter
ZIMBABWEAN platinum producer Mimosa Mining Company, has abolished the post of executive chairman previously held by Mr Winston Chitando, who left the mining concern to join Government as Mines and Mining Development Minister in December last year.

The company’s shareholders have already agreed to scrap the powerful post, which Minister Chitando held and have instead, handed over the stewwardship of the company to managing director Fungai Makoni.

Mr Makoni is a chartered accountant boasting 15 years’ experience in the mining sector.

“A decision was made by the shareholders that the post of executive chairman (previously) held by Minister Chitando) would be dissolved,” said the mining firm in a statement.

“Managing director Fungai Makoni has assumed leadership of the organisation in his present capacity,” notes the statement.

The mining firm also commended improved communication and engagement with Government under the new political order led by President Emmerson Mnangagwa as the miner grapples with challenges afflicting the mining sector, chief among them, fluctuating metal prices on the international market.

The issue of inadequate foreign currency as well as multiple Government taxes that has been raised by other miners is also worrying Mimosa and their hope is this will be addressed by new fiscal regime the mining sector.

“We must compliment the Government on improved dialogue and efforts in coming up with shared practical solutions. The current progress on finalisation of policies affecting us has been reasonably good and we hope we can see consistency in this respect to allow long term decision making in our operations.

“We continue, however, to have constraints and viability issues in a number of areas. The current multiple and fees are a bit on the high end. We continue to engage (the) Ministry of Finance (and Economic Planning) on outstanding fiscal matters and eagerly await the new fiscal regime for the mining sector.

“Inadequate forex supply: This has resulted in some suppliers increasing their prices citing challenges in their operational environment,” said the statement.

The entity is also undertaking a new study on the life of the mine that should help inform decision making while at the same time they are working on a deliberate road map to replace obsolete equipment with new that helps in predicting ground conditions ahead of mining.

Output has also been on a steady increase since 2012 when a tonnage of just over 2,3 million was produced while in 2017 output tonnage rose to just over 2,8 million tonnes and this year a projected output target of 2,91 million tonnes has been set.

Mimosa’s upward production projection augurs well with President Mnangagwa’s call to optimise production in mining, which he has since identified as a key enabler together with agriculture in the country’s quest for economic revival.

Government has to date signed a $4,2 billion platinum investment deal with Karo Resources of Cyprus as it seeks to kick start the economy from years of regression. The platinum mining entity also noted progress on its smelter project, which is now at bankable feasibility study stage.

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