HomeNewsUS-based firm acquires local mining contractor

US-based firm acquires local mining contractor

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United States-based firm Mabwe Minerals Incorporated has acquired 25% of WGB Kinsey&Company, a local mining contractor,  under terms of an equity exchange agreement, the company has said.

Report by Bernard Mpofu

With four generations of the Kinsey family leading the company since 1955, WGB Kinsey&Company is widely regarded as one of the top four mining and construction contractors in the country with operations at the mineral-rich Great Dyke.

WGB Kinsey&Company said they would begin staging barite qualification lots during the first quarter of next year with rail shipments to the Port of Beira, Mozambique, to commence no later than the second quarter.

In a statement, the firm’s managing director Anthony Kinsey said: “The Dodge Mine property offers an easy access site with no water hazards or terrain features requiring extensive infrastructure development.

“The barite lenses are clearly defined in the gravity mapping report and access to the barite deposit is straightforward.”

“Mabwe Minerals Inc is also pleased to announce it has completed the organisational structure of its Zimbabwe operations with the formation of Mabwe Corporation (Private) Limited (Mabwe-Corp).

Mabwe-Corp was created to optimise the fiscal incentives awarded to Zimbabwean companies that derive income from mining operations with separate provisions for companies engaged in the mining of minerals and metals.”

Mabwe-Corp is the parent/holding company with two independent operating companies — wholly-owned Mabwe Minerals Zimbabwe (Private) Limited, responsible for Dodge Mine logistics, property management, local mineral sales and shipments of barite and a 25% equity position in WGB Kinsey&Company.

Mabwe Minerals Inc chief executive officer Al Pietrangelo, who also doubles as the company’s president, said the firm was set to benefit from the country’s tax incentives.

“With our Zimbabwe organisational structure optimised to take advantage of the tax incentives provided by the Zimbabwe mining authorities along with the opportunity to acquire 25%
of WGB Kinsey&Company, we believe that we are well positioned to achieve our goal of completing our first barite shipment during the 3rd quarter of 2013,” he said.

WGB Kinsey&Company owns mining equipment, including a fleet of articulated dump trucks, front-end wheel loaders,excavators, dozers and graders.

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