eBusiness Weekly
Tawanda Musarurwa
Kuvimba Mining House is already showing efficacy in reviving the fortunes of struggling mining assets, but perhaps more importantly it is working well as a tool for the implementation of Government policies across different respects.
Through the US$5,2 million dividend paid out this week, the entity has met obligations in respect of compensation for improvements under the Global Compensation Agreement, funded the National Venture Fund, compensated pensioners in respect of legacy pensions, compensated small depositors for loss of value on savings, contributed to the Sovereign Wealth Fund of Zimbabwe and added to Government coffers all in one go.
This relates to how Kuvimba was structured as an entity, as outlined by Finance and Economic Development Minister Professor Mthuli Ncube.
“12,5 percent which is for the purpose of meeting obligations in respect of compensation for improvements under the Global Compensation Agreement signed between Government and former farmers. This shareholding, together with the capital uplift from the shares as well as dividend flows are a tangible financial commitment to the compensation process, in addition to the resources that are already being availed via the National Budget.
“7,5 percent of the equity in Kuvimba is held by the National Venture Fund which is managed by the National Venture Capital Company of Zimbabwe. Of this, 2,5 percent is held on behalf of youths whose projects will be supported under the Fund; 2,5 percent for supporting women’s projects and 2,5 percent is held for the account of Veterans of the Liberation Struggle,” said Mthuli.
“Five percent shareholding is held by the Insurance and Pensions Commission and proceeds thereof are earmarked for compensation in respect of legacy pensions.
‘‘Government recognises that those pension funds which were eroded by devaluation when the economy adopted the multi-currency system in 2009 need to be compensated for exchange rate induced loss of value as recommended by the Justice Smith Commission Report.
“In similar vein, the Deposit Protection Corporation holds 5 percent shareholding in the company. The DPC is working on a framework towards some compensation for small depositors for loss of value on savings. 7 percent of shares in Kuvimba are held by the Public Service Pension Management Fund.
“6,5 percent shareholding is held by the Sovereign Wealth Fund of Zimbabwe, a statutory fund which is now being fully implemented for the future benefit of the Zimbabwean citizenry. The Government holds 21,5 percent equity in Kuvimba.
The remaining 35 percent is held by the private sector investors which includes management.”
This strategic shareholding means the success of the mining entity works to meet Government’s obligations in a number of key areas that contribute to the broader Vision 2030.
It has contributed to one of Vision 2030’s major objectives of job creation, as the entity employs just under 4 000 workers. However, beyond meeting these interests, Kuvimba is doing well with regards to its short-term targets of reviving struggling mining assets.
Kuvimba’s portfolio include: Freda Rebecca Gold Mine, Bindura Nickel Corporation, Shamva Gold Mine, Jena Mine, Elvington Mine, Sandawana, Homestake, Zim Alloys, and an investment in Great Dyke Investments (GDI).
But, as management says, the most exciting prospect lies within Shamva Gold Mine.
The operations at Shamva had stopped in January 2019 when the bulk of the employees were retrenched. Operations at Shamva have since resumed and the mine now employs just under 900 employees and recently, a detailed exploration program to delineate the resource at Shamva hill was concluded.
“The plan is to exploit this resource via a mega open-pit mine with the pre-feasibility study which was conducted indicating a viable large-scale long-life mine. Once fully developed, Shamva has the potential to become the largest gold mine in Zimbabwe by output and will target an annual production of 3 500kg of gold per annum,” said management.
Kuvimba is playing its role in ensuring that the Government’s vision of a US$12 billion-dollar mining economy is attained.
