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Namib Minerals to invest $300 million in restarting Zimbabwe mines

Ibrahima Tall, the chief executive of Namib Minerals, said on Tuesday that it plans to invest $300 million in order to restart two of its gold mines which were mothballed in Zimbabwe.

Namib Minerals is the owner of three gold mines, including How Mine, currently in operation.

Tall said that the funds will be used to restart production at the Mazowe and Redwing mining operations, which were halted due to economic conditions in 2018 and 2019.

Namib Minerals debuted in the Nasdaq market on June 1. It was formed by merging assets owned by Metallon Corporation with Red Rock Acquisition Corporation (formerly Hennessy Capital Investment Corp.) from the United States.

Tall said that production at the two mines suspended could resume in 18-24 months after Namib Minerals secures financing for their relaunch. He added that the firm was exploring different options to raise the capital required.

In an interview with Harare, the capital of Zimbabwe, he stated that "interest from investors has been very high."

Mazowe is located north of Harare and contains 1.2 million ounces gold with an average of 8.4 grams of gold per metric ton. Redwing, which is near the border of Mozambique has 2.5 million ounces with a 3.07 gram grade.

Namib Minerals How Mine in Bulawayo produced 37, 000 ounces gold in 2024. This is a 9% rise on the output of the previous year.

Zimbabwe's gold mining industry, which has been struggling for years due to currency and policy volatility is now expanding production in response to the record high gold prices, and relative stability of political and economic conditions.

Caledonia Mining Corp., which owns Blanket Mine in Zimbabwe, is exploring ways to raise $250 million for the construction of what could be Zimbabwe’s largest gold mine. (Reporting and editing by Nelson Banya, Joe Bavier, and CHRIS TAKUDZWA-MURONZI)

(source: Reuters)