HomeBusinessMining giant Kuvimba declares US$5,2m dividend

Mining giant Kuvimba declares US$5,2m dividend

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BY MIRIAM MANGWAYA

Mining giant, Kuvimba Mining House (KMH) has paid US$5,2 million dividend to its shareholders, including government, for the first time since its establishment a year ago.

Government is the largest investor in the mining company, holding 21,5 % of the shares and it got US$1,7 million from the dividends.

Other public shareholding companies include the Sovereign Wealth Fund of Zimbabwe, Public Service Pension Management Fund and the Insurance and Pensions Commission. Private companies account for 35% of the shares.

The mining company, which has more than
3 500 employees, paid its dividends for the financial year ending March 2021 at a time when most mining companies, grappling with the effects of the COVID -19 pandemic, are struggling to stay
afloat.

Speaking during a virtual ceremony to hand over the dividends yesterday, KMH chairperson Justin Mupamhanga said: “Having heeded His Excellency (Emmerson Mnangagwa)’s call that Zimbabwe is, indeed, open for business, Kuvimba has taken its rightful place in the economy by contributing directly towards the attainment of the mining sector vision of delivering a US$12 billion mining industry by 2023, which anchors the National Development Strategy 1 (2021-2025), and thus ensuring the President’s vision is attained.”

“The NDS1 also places prominence on equality of opportunities and non-discrimination, as well as empowerment of Zimbabwean citizens, a principle summarised as ‘leaving no-one and no place behind’.”

Finance minister Mthuli Ncube said government had invested in KMH to promote a rapid economic growth.

“Kuvimba is an example of the second republic thrust to reawaken Zimbabwe economy’s potential by unlocking value, out of various natural resource and mineral endowment,” Ncube said.

“The mining house is playing its role in ensuring that government’s vision of a US$12 billion mining economy by 2023 is achieved by paying its part. Kuvimba is thus contributing not only to the attainment of national strategic objectives under NDS1, but the pursuit of vision 2030.”

The company also released $250 million through the Finance ministry to the Zimbabwe Women’s Microfinance Bank to recapitalise women entrepreneurship.

Women’s Affairs minister Sthemibiso Nyoni said the fund would increase female participation in the business sector as they would access more capital to start their own businesses.

Freda Rebecca Gold Mine, Bindura Nickel Corporation, Shamva Gold Mine, Jena Mine, Elvington Mine, Zim Alloys, and Greak Dyke Investments are subsidiaries of KMH.

Between 2011 and 2020, Freda Rebecca Gold Mine produced on average, between 1 500kg and 2 100kg of gold per year and KMH has managed to increase gold production to 2 690kg within the first year of full ownership of the mine.

The company targets to increase production to 3 215kg of gold per annum and through Freda Rebecca, has already reached a milestone, breaking the 20-year-old history by producing 300kg of gold in just one month.

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