The good news for Zimbabwe is that Russian investors have started a new $3 billion (R33bn) platinum mine about 50km north-west of Harare. Russian Foreign Minister Sergey Lavrov and Zimbabwe\u2019s President Robert Mugabe turned the first sod yesterday.<\/p>\n
The bad news for Zimbabwe is that a South African mining firm, which believed it had a licence to extract platinum nearby, and invested millions prospecting and producing a feasibility study, and was then kicked off its claim, last week won an order to seize all Zimbabwe\u2019s diamonds sold in Antwerp over the past 10 days.<\/p>\n
Lavrov and Mugabe launched the joint venture to develop the Zimbabwean deposit of platinum group metals in the Darwendale district. The mine was targeting production of 250 000 ounces annually within three years, the Zimbabwean ministry of mines said.<\/p>\n
Peak production would be 800 000 ounces a year, which should help Zimbabwe produce 1 million ounces annually in five years time.<\/p>\n
The land, which includes the site Russian investors secured, used to belong to South African-owned Zimbabwe Platinum (Zimplats), which ceded it to the government of Zimbabwe in 2006 for empowerment credits and cash, but was never paid out. The argument between Mugabe\u2019s government and Zimplats about \u201cindigenisation\u201d of its assets is still simmering…<\/p>\n