Kuvimba acquires 50% stake in Great Dyke Investments
Kuvimba Mining House has acquired 50% stake in Great Dyke Investments from Afromet Joint Stock Company, thereby becoming the majority shareholder in the platinum mine.
Kuvimba has invested heavily in the mining sector, having snapped Freda Rebecca Gold Mine, Bindura Nickel Corporation, Shamva Gold Mine, Jena Mine, Elvington Mine and Zim Alloys.
“The board of directors of Kuvimba Mining House is pleased to announce the company has concluded negotiations to purchase 50% of the shares in Great Dyke Investment (GDI)from Afromet Joint Stock Company,” statement reads.
“GDI is a platinum group metals mining company in Darwendale, in the Great Dyke. The Great Dyke is the largest system of Platinum Group Metals mineralization in the world. This acquisition will have a material impact on the value of KMH as it continues to take its rightful place in the economy.”
Last year, the company declared its first dividend, paying US$5.2 million to its investors after it reported record production.
The dividend was paid to shareholders in the first quarter of 2022, earlier than expected.
Government, the largest investor in the mining company with 21.5% stake, got the proverbial lion’s share of US$1.7 million.
The second highest earner was Datvest Nominees which got US$1 million. The National Venture Capital Company of Zimbabwe got US$600 000 while the Public Service Pension Management earned US$560 000.
Other public shareholders, namely the Public Service Pension Management, Deposit Protection Corporation, Wealth Fund of Zimbabwe, Fund and the Insurance and Pensions Commission got US$560 000, US$400 000 and US$400 000 respectively.
Finance minister Mthuli Ncube said the government had invested in KMH to promote rapid economic growth.
“Kuvimba is an example of the second republic’s thrust to reawaken the Zimbabwe economy potential by unlocking value, out of various natural resource and mineral endowment,” he said.
Between 2011 and 2020, Freda Rebecca Gold Mine produced on average, between 1 500kg and 2 100kg of gold per year and the company has managed to increase gold production to 2 690kg within the first year of full ownership of this mine.
The company targets to increase production to 3 215kg of gold per annum.
