RHA Tungsten concludes deal with NIEEF

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RHA Tungsten has concluded a shareholder and management agreement with the National Indigenisation and Economic Empowerment Fund (NIEEF) to explore tungsten in Hwange.

By Victoria Mtomba

RHA owns Premier-RHA Tungsten Project in northwest Zimbabwe.

Under the agreement, the NIEEF will hold 51% of the issued share capital of RHA.

ZimDiv Holdings Limited, which in turn controls the remaining equity in RHA, is appointed as the manager of the project for an initial five-year term.
In an telephone interview yesterday, National Indigenisation Economic and Empowerment Board (NIEEB) chief executive officer Wilson Gwatiringa said the deal was one of the investments that would make NIEEF a shareholder under the indigenisation laws.

He said NIEEF was also a shareholder in Blanket Mine and PPC Cement.

“We are doing the same with Tungsten (Private) Limited and it’s still an exploration venture, but it will end up as a normal mining venture. The fund has assets, this is what is used for these transactions,” Gwatiringa said.

Premier African Minerals chief executive officer George Roach said RHA was responsible for its own development costs and eased the burden on Premier as well as broaden the financial resources to develop the project into a low-capex tungsten mine in the near future.

RHA was responsible for its own funding and neither Premier nor NIEEF shall be under any obligation to contribute to its exploration and development
costs.

Under the agreement, Premier will provide interim assistance for on-going operations until alternative finance was in place.

“Once RHA has obtained sufficient committed finance to enable it to develop and construct the mine and the project has achieved commercial production, Premier will issue to NIEEF such number of new ordinary shares,” Roach said.

1 COMMENT

  1. Guys, I picked this comment elsewhere about another country that is troubled by indigenisation issues. Please compare with our situation in Zimbabwe:

    The Mongolian Government has nobody to blame but itself for this lack of foreign investment. It has no mining experience of its’ own, no capital, an educated but unskilled workforce, a land-locked country and with the only realistic markets for its’ bulk materials as being Russia and China.

    It used to get some good advice (World Bank etc) but then corruption and greed took over and a new sense of “Nationalism” has taken control. What was needed was to let Oyu Tolgoi get going (under the existing terms) and show the World that big business was welcome in Mongolia which needed to address the real issues above. The Human Development Fund (USD20/month to each man, woman and child), meant to share the benefits of any perceived mining boom in Mongolia was established, was established Before there was any real income from these developments. This equates to about USD700 million per year which continues to redirect/waste project capital.

    The Govt group of Erdenes TT has done an abysmal job of developing the extensive Tavan Tolgoi coal field – mainly due to “milking” of project monies for the HDF.
    Now, no-one but the Chinese will build the infrastructure required to develop this extensive coal resource as only they have the muscle to enforce a deal with Outer Mongolia which will only benefit Inner Mongolia. I fear that Mongolia will spend some time in the wilderness before the World is prepared to trust another inept Government; but perhaps one which has a genuine desire to do the best for Mongolia’s people.

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