Tagwirei-linked Landela Takes Over 4 State-Owned Gold Mines
Zimbabwe’s Landela Mining Venture is slated to take over four idle state-owned gold mines after reaching agreements with the state. The mines were put up for sale in 2018 but the government cancelled the process last year without giving a reason.
The unlisted Landela which is majority-owned by Kudakwashe Tagwirei, an adviser to President Emmerson Mnangagwa is also said to be in talks to buy more assets from a privately-owned bullion producer.
The development was confirmed on Friday by the company’s chief executive David Brown, who told Reuters that Landela’s takeover of gold mines run by state-owned Zimbabwe Mining Development Corporation (ZMDC) would be funded through debt and equity. He said:
Agreements are in place, but a close-out of the process is still subject to being finalised with the appropriate authorities.
I would expect it to be completed in Q3 and will be funded through a mixture of debt and equity.
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ZMDC claims the four mines have a capacity to produce at least 85 000 ounces a year. Landela has been on a buying spree of local mining assets since 2019 and last month, it restarted operations at the 21 000 ounces a year Shamva mine after buying it from Metallon Corporation, owned by South African businessman Mzi Khumalo.
Gold is the single biggest forex earner in Zimbabwe and controlling its production gives Landela greater access to dollars, which are in short supply in the country.
Tangwirei is also in other sectors including energy, agriculture, health and transport, a situation that could lead to state capture.
More: Reuters
