MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
Zimbabwe Mining Development
Corporation
MINING PROJECTS
and OPPORTUNITIES
for
INVESTMENT
1
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
TABLE OF CONTENTSPAGE
SUMMARY OF MINING PROJECTS AND OPPORTUNITIES FOR INVESTMENT
1
1.
PRECIOUS METALS SECTOR 3
1.1
Elvington Gold Mine
1.2
Golden Kopje Gold Mine
2.
BASE MINERALS SECTOR 7
2.1
Tin-Tantalite-Lithium From Kamativi Mine Dump and Lutope Special Grant
7
2.2
Copper Mines – Mhangura, Alaska and Sanyati
8
2.3
Sandawana Mine - Tantalite and Other Minerals 9
3.
INDUSTRIAL MINERALS SECTOR10
3.1
Lynx Graphite Mine
3.2
Limestone Mining and Processing
12
3.3
Asbestos Mining and Processing
13
4.
ENERGY MINERALS SECTOR
4.1
Coalbed Methane Gas Mining and Beneficiation 4
6
10
14
CONTACTS15
2
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
3
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
Summary of Mining Projects
and Opportunities for Investment
The Zimbabwe Mining Development Corporation
(ZMDC) invites interested investors to take advantage
of the wide range of investment opportunities we are
offering.
Our portfolio covers a variety of clusters including:
precious metals and precious stones, base minerals,
industrial minerals as well as energy minerals.
Not only will the investments achieve impressive returns
for the investor, but will also enable crucial contribution to
the socio-economic development of Zimbabwe.
For Investment attractiveness, the Zimbabwe Government
is currently re-aligning its Policies in the minerals sector
in order to promote more orderly, efficient and effective
performance, market driven initiatives and results-oriented
mining and beneficiation projects in the country.
All these opportunities present great potential for feasible
and bankable investments.
The available Investment projects are summarized below.
4
NO.
MINERAL
MINING LOCATION
DISTRICT
MINING PROVINCE
1.
Gold
Elvington Mine
Golden Kopje Mine
Chegutu
Chinhoyi
Mashonaland West
2.
Tin, tantalite, lithium,
berrylium, niobium,
(pegmatites minerals)
Kamativi Mine
Lutope Mine
Kapata Mine
Hwange
Matabelend North
3.
Emeralds, Iron Ore,
Tin, tantalite, lithium,
berrylium, niobium, gold
Sandawana Mine
Mberengwa
Midlands
4.
Copper
Alaska Mine
Mhangura Mine
Sanyati Mines
Makonde
Gokwe North
Mashonaland West
Midlands
5.
Graphite
Lynx Mine
Karoi
Mashonaland West
6.
Limestone
Mumburume Mine
Mberengwa
Midlands
7.
Asbestos
Shabanie Mine
Gaths Mine
Zvishavane
Masvingo
Midlands
Masvingo
8.
Coalbed Methane
Mbungu – Lupane
Gwayi - Lupane
Lupane – Gokwe
S Lupane – Nkayi Nyamandlovu
Matabeleland North
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
1
PRECIOUS METALS
AND PRECIOUS STONES
5
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
1.1 ELVINGTON GOLD MINE
Mineral
Gold
Location
14 km North of Chegutu Town, Zimbabwe
Mineral
Resources and
Reserves
(Local Standards)
Ore Category
Tonnage
Grade g/t
Content - kg
Ore Reserve236,6022.5591.5
Ore Resource1,005,135
1.821,834.6
Total1,241,737
1.952,426.1
Slimes Dump2,419,862
0.871,949.9
Mining Rights
21 Mining Claims – Total Area 473 Hectares. Adjacent Farmland of 1274 Ha.
Registered and operating as Mineral Development (Pvt) Ltd.
Infrastructure
Wide tarred road is 1km away, access to water and electricity,
Total Assets – Valued at US$10 Million as at 2016.
Documentation
Available
Production
History and
Capacity
1. Geological Reports
2. Feasibility Reports
Elvington Mine closed down in 2003 when the main shaft collapsed due to intense faulting and
inadequate pillar support around the shaft. The Mine is on care and maintenance, underground
dewatering is in progress.
Production capacity after re-capitalization => 15,000tonnes of ore milled, to produce 50kg Au/month.
1. Dump retreatment,
2. Mine the surface oxidized reef (oxide cap) and heap leaching of the ore, for quick mine
resuscitation process.
Proposal
3. On underground, start with capital development of new shaft and then production
resuscitation.
4. Exploration activities are required for additional resource generation to justify mine expansion.
5. Development and growth – develop northwards to link up with Sarling exploration Shaft
section, some 2km north of Elvington Mine.
Funding Required TOTAL US$13.5 Million
Investment
Attractions
High returns to the Investor, 170% in one year.
A 1-tonne /year gold mine, There are low hanging fruits in dump and oxide cap, high expansion
potential.
Removal of royalties on gold production to promote national output.
Friendly tax regime, multi-currency is usage – US$, AUS$, BP, IR, Yen, Rand, Euro.
Investment
Benefits
6
Mine resuscitation, employment creation, revenue to the fiscus.
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
1.2 GOLDEN KOPJE GOLD MINE
Mineral
Gold
Location
140 kilometres North-West of Harare, Zimbabwe and about 22km south of Chinhoyi town along the
Zumbara road.
Mineral
Resources and
Ore Reserves
(Local Standards)
Mining Rights
Infrastructure
and Production
History
Documentation
Ore Category
Tonnage
Grade g/t
Content - kg
Reserves61,7345.2319.8
Resources1,049,7615.05278.2
Total1,111,4955.05597.9
Slimes Dump622,0000.8377.6
A mining Special Grant measuring 3,100Ha.
A brown field Investment with the mine closed in 2012. Good power and water supplies, access road is tarred
road up to the mine. Two large surface shafts and a milling plant with capacity 15,000tonnes of ore/month, to
produce above 50kg gold /month.
Has potential for growth due to presence of a high capacity single lift hoisting system from underground, availability
of open castable reserves and a high Plant capacity.
Available
1.
2.
Partnership
Proposal
Joint Venture partnership,
Shareholding structure sought is 51% ZMDC : 49% Investor.
Funding Required
TOTAL US$8million required
Geological Reports
Feasibility Reports
(a) Mine re-capitalization for production resuscitation, conversion of resources to reserves, equipment
upgrading, dump retreatment and open cast mining.
Project Proposal
(b) Exploration and development are planned on the existing ore bodies in order to convert the drill indicated
resources to ore reserves and to ramp up reserves. i.e. J-Lens, Golden Kopje Main North Parallel and
Union Jack (open-castable).
(c) High productivity and profitability levels are expected because of wide reefs with high grades underground,
availability of open-castable reserves on surface and a high Plant capacity.
o A 1-tonne /year gold mine. There are low hanging fruits in the tailings dump and the open castable reserves
Investment
Attractiveness
on surface.
o The mine has a high future potential. It is sitting on the gold rich, N-S striking Eldorado Shear Zone,
stretching across the City of Chinhoyi.
o Removal of royalties on gold production to promote national output.
*
Optimization of Production to benefit shareholders, high returns
*
Mine resuscitation, Employment creation and boost to economy with revenue to the fiscus.
*
Dump retreatment and open cast mining have got potential for immediate revenue generation and to buy
time for full revamping underground as well as further exploration investigations for future growth.
*
Exploration activities are required for additional resource generation to justify expansion.
*
A 1-tonne /year gold mine, there are low hanging fruits in dump and oxide cap, high future potential.
*
Removal of royalties on gold production to promote national output.
Investment
Benefits
7
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
3. BASE MINERALS SECTOR
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
2.1 TIN-TANTALITE-LITHIUM PROJECT - KAMATIVI MINE DUMP AND LUTOPE SPECIAL GRANT
Mineral
Tin, Tantalite, lithium, beryllium, niobium, rubidium, mica and tungsten.
Location
290 kilometres north of Bulawayo, easily accessible by road. Lutope is situated 35 kilometres from Dete
railway siding turnoff. Kamativi is 45km from Dete.
o Lutope has a drilled tin ore resource of at least 21 million tonnes grading 0.12%Sn already available.
Mineral Resources and
Reserves
o The Kamativi mill tailings dump has at least 22 million tonnes of 0.75%Lithium, 0.045% Beryllium; 0.34%
Mining Rights
Exploration Special Grant No.5651 – approximately 4275 hectares, 9.5km x 4.5km
Infrastructure
An exploration prospect with no buildings on site.
Documentation
Available
Production History
Tin; 0.01% Tantalite; 0.01% Niobium; 0.3% Rubidium; 17.5% Mica.
Geological reports and past production records.
Considerable tin and tantalite concentrates have been produced in the past from pilot mining. Small but
‘technically’ significant tonnages of the Lithium bearing mineral Amblygonite were also produced.
The project programme involves:
a)
Kamativi Dump assessment and minerals extraction feasibilities. Commission production
b)
Surface bulk mining and Spodumene Concentrator plant commissioning.
c)
An exploration program for Lutope and Kapata Claims, essentially encompasses 4 (four) phases
broadly described as Phase 1 - desk top and reconnaissance site work, Phase 2 - target generation
and drilling. Phase 3 - ore body delineation and Ore Reserve modelling, together with metallurgical
test work. Phase 4 – Pilot mining and production commissioning.
d)
Bankable Feasibility Studies, the development of high level method of mining and full project
viability - a low-grade, high-tonnage deposit which is amenable to open cast mining. Mining project
implementation.
e)
Provide supportive mine infrastructure and services, inclusive of water, power, communications
and access roads.
f)
Lastly, the construction of a Lithium Carbonate Plant for mineral concentrates beneficiation.
g)
Local manufacturing of Lithium Ion batteries.
Project Proposal
Funding Required
At least US$ 260 Million to fund the full project up to mineral beneficiation.
Partnership Proposal
Joint Venture partnership with a Shareholding structure: 51% ZMDC: 49% Investor.
* The Tailing dump at Kamativi presents greatest potential to generate and guarantee cash flow within
short period of time.
Investment
Attractiveness
* To ride on current high prices of lithium, tin and tantalite.
* Project has potential for tungsten and rare earths metals extraction as by-products.
Investment Benefits
* Rewarding Dividends for shareholders.
* Employment creation, Community socio-economic development.
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
2.2 . COPPER MINES – MHANGURA, ALASKA AND SANYATI
Mineral
Locations
Ore Reserves
and Resources
Copper
1.
Mhangura Copper Mines – 139 Kilometres North-West of Harare
2.
Alaska (Lomagundi Smelting and Mining) – 130 Kilometres North-West of Harare
3.
Sanyati Volcanic Massive Sulphide Deposits (VMS) – 115 Kilometres South-West of Chinhoyi Town - Sanyati
Copper Mines
Mine
Section/
Deposit
Mhangura
Copper
Mines
Miriam Mine
Alaska
(Lomagundi
Smelting and
Mining)
Shackleton
& Angwa
Mines
Sanyati VMS
Deposits
Partnership
Proposal
Cu Queen &
Cu King Mines
Resources
&
Reserves
Proved & Probable
7.21 million tonnes
@ 1% Copper
Other Notes
• Deposit has potential of resources of a further
60 million tonnes @ 1% Copper
• Also Au, Ag & Mo mineralization
Proven & Probable
200,000 tonnes @ 0.85% Copper
Measured & Indicated
310,000 tonnes @ 0.91% Copper
Also gold, silver and molybdenum mineralisation
Proven & Probable
14.4 million tonnes @ 2.88% Copper
Indicated
3.52 million tonnes @ 3.5% Copper
Average grades: 1.56% Copper, 1.43% Lead; 1.73% Zinc
Joint Venture partnership at 51%ZMDC and 49% Investor
To negotiate the Investment terms.
Total Area – 201,000 Hectares of Exploration Special Grants, broken down as follows:
Mining Rights
Documentation
Available
1.
Mhangura Special Grant – 112,000 Hectares
2.
Lions Den Special Grant (Alaska - Lomagundi Smelting and Mining) Special Grant – 63,900Ha
3.
Sanyati Special Grant – 25,100 Hectares
1.
2.
Geological Reports
Feasibility Reports
1.
Recapitalization and resuscitation of the three copper mines
• Extensive exploration programme
• Operationalization of the three copper mines
• Designed plant throughput is One Million tonnes per annum
• Commission of a new Smelter and Resuscitate the Alaska Refinery
Development and Growth => Start mining the available proven and probable ore reserve of 17.91 Million
tonnes of copper complex ores then grow from there.
Project
Proposal
2.
Funding
Required
Partnership
Proposal
3. Historical technical and production records.
At least US$350 million required.
Joint Venture, 51%ZMDC and 49% Investor.
To negotiate the Investment terms.
* The Tailing dump at Alaska Smelter presents the greatest potential to generate and guarantee cash flow within
Investment
Attractiveness
short period of time.
* To ride on current high prices of copper
* Sanyati has near surface ore resources and reserves, the sulphides of which are still untapped.
• Rewarding Dividends for shareholders.
Investment
Benefits
• Employment creation and rewarding dividends for shareholders.
• Community socio-economic development.
• Significant profit based on the prevailing and attractive average world market prices for copper and expected
price gains in the future.
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
2.3 SANDAWANA MINE - TANTALITE AND OTHER MINERALS
Mineral
Tantalite, tin, lithium, chrome, banded ironstone, gold, fuchsite slate
Mineral Resources and
Reserves
242 million tonnes of drill indicated tantalite resource, at a grade of 800g/t tantalite, 40% Ta2O3.
Location
Sandawana; 100 Kilometres South West of Zvishavane Town, Zimbabwe.
Mining Rights
Mining lease area of 3,924 Hectares.
Documentation
Available
Geological Reports.
Project Proposal &
Funding Required
1
2
3
Partnership Proposal
Joint Venture partnership with a Shareholding of 51% ZMDC: 49% Investor.
Exploration Programme for Tantalite.
Mining and Processing of Tantalite.
Exploration, Mining and Processing of other minerals.
· The Mine has a unique geological set-up hosting a variety of deposits in the same area.
Investment
Attractiveness
· The Mill tailing dumps presents the greatest potential to generate and guarantee cash flow within
short period of time.
· Sandawana has near surface ore resources still untapped.
• Rewarding Dividends for shareholders.
Investment Benefits
• Employment creation and Community socio-economic development.
• Boost to economy and mining industry.
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
3
INDUSTRIAL
MINERALS SECTOR
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
3.1 LYNX GRAPHITE MINE
Mineral
Graphite
Location
55 kilometres from Karoi Town, Zimbabwe
Mineral Resources
and Reserves
Reserves 526 828 tonnes @ 20% Carbon
Resource 940 310 tonnes @ 20% Carbon
Total Resources and Reserves = 1,467, 138 tonnes @ 20% Carbon
Mining rights area is 570 hectares.
Mining Rights
21 Standard Base Metal Blocks with 516 Claims and 35 site blocks (54Ha)
Potential for new peggings for exploration and feasibility.
Documentation
Available
1.
2.
3.
1.
2.
Project Proposal
3.
Geological Reports.
Feasibility Reports.
Business Plan.
Mine Recapitalization.
• Plant upgrade and refurbishment.
• Blackstone Shaft Project to increase Life of Mine.
Exploration
• Trokiadza Exploration Project for generation of future resources.
• Estimated in-situ resource value of US$60 Million.
Development
• Increase production to 1000 tons product/month from current 600t.
• Aggressive marketing to increase market share.
• Product beneficiation project.
Funding Required
TOTAL US $5million
Partnership
Proposal
Graphite Product Uptake.
New Technology Arrangements.
Open up new and parallel graphite mine project on our separate and clean mining titles, on Joint. Venture
partnership. 51%ZMDC and 49% Investor.
Investment
Benefits
• Employment creation.
• Rewarding Dividends for shareholders.
Investment
Attractiveness
· High beneficiation potential into this high value mineral product, essential for high-tech industry.
· A going concern that is seeking capital injection to prop up the business.
· Lots of high quality mineral deposits occurring near surface and in the vicinity of the mine.
• Rewarding dividends for shareholders.
Investment
Benefits
• Mine re-capitalization and growth, beneficiation opportunities still untapped.
• Employment creation and Community socio-economic development.
• Boost to economy and mining industry.
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
3.2 LIMESTONE MINING AND PROCESSING
Mineral
Limestone
Location
15 km east of Mberengwa Growth Point, Zimbabwe.
Mineral Resources and
Reserves
Inferred ore resource of 255.5 million tonnes of limestone at an average grade of 49.5% Calcium Oxide
(CaO) and 4.8% Magnesium Oxide (MgO). Limestone Saturation Factor of 265.5 and Silica Ratio of 0.91
These resources are still to be drilled. There is potential to generate an additional 300 million tonnes. At a
production rate of 1million tons/year, this gives a LOM value of 255 + 300 years.
Mining Rights
12 Blocks of Mining Claims – Total Area 400 Hectares.
Documentation
1.
2.
Geological Reports
Feasibility Reports
1.
Exploration Programme. Resource upgrading to measured.
2.
Mine and Plant Development for Limestone Extraction. Estimated in situ resource value of US$2
billion.
3.
Establishment of a Cement Manufacturing Plant.
Available
Project Proposal
Funding Required
TOTAL US$225million
Partnership Proposal
Joint Venture partnership at a Shareholding of 51% ZMDC: 49% Investor.
Investment
Attractiveness
· High beneficiation potential for cement manufacturing.
· High resource potential on surface, a hill.
• Rewarding Dividends for shareholders.
• Greenfield Mine capitalization and growth, beneficiation opportunities untapped.
• Establishment of a Cement Plant with capacity of 850,000 tonnes per year.
• Seven (7) years payback following a two-year project implementation phase.
Investment Benefits
• Net Present Value (NPV) projected at US$55.4million at an 8% discount rate given a cement price of
US$200 per tonne.
• Ready markets in the Manicaland and Matabeleland regions of Zimbabwe.
• Employment creation and Community socio-economic development.
• Boost to economy and mining industry.
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
3.3. ASBESTOS MININING AND PROCESSING
Mineral
Chrysotile Fibre (Asbestos)
Locations
At SMM Holdings, comprised of the following mines:
1. Gaths Mine in Mashaba, 35 Kilometres West of Masvingo Town, Zimbabwe
2. Shabanie Mine, in Zvishavane Town, Zimbabwe. 100km south of Masvingo.
o Proven and Probable Ore Reserves are 38.539,209 tons @ 5.9% fibre representing LOM of 17 years at
capacity, 150,000ton of fibre/year. o Inferred resources represents 25 to 30 years of production.
Mineral
Resources and
Reserves
Mining Leases and
Claims
Infrastructure &
Capacity
1.
Gaths Mine, 4,355 Ha for 3 mining leases, no. 6, 7 and 8 (Gaths, Temeraire and King).
2.
Shabani Mine, 3,546 Hectares.
All titles are registered and operated by African Associated Mines (Pvt) Ltd., a 100% subsidiary of SMM Holdings
(Pvt) Ltd, which is in turn owned 76% by ZMDC.
Good power and water supplies, access roads are all tarred up to the mines. Shabanie has a rail siding and
warehouses. Modern shafts, winding and milling plants. 150,000 tonnes per annum of high quality chrysotile fibre,
95% for ready export markets, 75,000 tonnes from each mine.
Geology
• Ultramafic bodies (pear shaped pipe at Gaths and discrete pods at Shabanie) hosted in the Mashava and
Documentation
Available
1. Geological Reports
2. Full Feasibility Reports
3. Detailed equipment requirements
Project Proposal
Shabanie Greenstone belts.
Project Capital Funding as follows:
• Working Capital - Dewatering of the flooded Mines.
• Mines Recapitalization – Infrastructure repairs and to replace aged and redundant capital equipment.
• Resuscitate mining of chrysotile fibre,
Funding Required
Partnership
Proposal
Investment
Attractiveness
Investment
Benefits
A total of $47million Investment funding is required for mines resuscitation is required.
$25 million at Shabanie and $22 million at Gaths Mine.
The capital funds can come in the form of a loan or equity funding.
Joint Venture partnerships at a Shareholding structure of 51% ZMDC: 49% Investor.
To negotiate the Investment terms.
· High ore reserves already available and ready for extraction.
· State of the art mining infrastructure and milling plants available at the two mine sites.
· Supply export market with premium long fibre which is in great demand. Readily available.international
markets.
•
•
•
•
Rewarding Dividends for shareholders.
Employment creation, at least 3000 employees.
Employment creation and Community socio-economic development.
Boost to economy and mining industry.
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
4
Energy MINERALS SECTOR
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MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
4.1 COALBED METHANE GAS MINING AND BENEFICIATION
Mineral Coalbed Methane Gas
(a) The Mbungu-Lupane area.
Location
(b) Gwayi – Lupane area..
Ore Reserve Category
Ore tonnes
In situ fibre
In situ fibre (US$)
Life of mine at
& Location(tonnes)capacity (yrs)
Resources and
Reserves
Gaths Silky ore reserves
16,718,791
1,252,163
$1.0 billion
17
Shabanie Silky ore reserves
19,483,142
923,724
$0.7 billion
12
Brittle ore reserves
2,337,276
95,828
$0.1 billion
16
2,271,715$1.8 billion
17
Totals38,539,209
An Indicated Coalbed Methane resource has been identified in the Karoo sediments, which now needs
detailed investigation and proved for extraction, gas content, permeability and seam thickness.
· The Mbungu-Lupane area => Special Grant No. 5755, measuring 333,160Ha
Mining Rights
· Gwayi – Lupane area
=> Special Grant No. 5754, measuring 304,705Ha
· All two registered in the name of ZMDC.
Documentation
Available
Reconnaissance Geological reports are available.
Exploration and
Production History
Zimbabwe has a huge resource of untapped CBM gas in the Hwange, Lupane and Gwayi areas. Over the
years drilling and desorption tests have been conducted and resources that run into trillions of cubic feet
have been discovered. The coals have proved to have good permeability which simply means that the gas is
released without the need to induce it (Fracking).
· Exploration (to determine the occurrence, distribution and quantities of coal bed methane (CBM) in the
area);
Project Proposal
· Development;
· Production and
· Beneficiation of Coalbed Methane Gas, to generate power, manufacture fertilizers, petrochemicals and
other by-products.
Funding Required
Subject to Feasibility studies.
Partnership Proposal
Joint Venture partnership with a Shareholding of 40% ZMDC: 60% Investor for execution of full project as
proposed.
· High gas resource potential, and ready for extraction.
Investment
Attractiveness
· A wide range of beneficiated products.
· High impact to wide industries and to the national economy.
• Rewarding Dividends for shareholders.
• Employment creation and Community socio-economic development.
Investment Benefits
• Boost to economy and mining industry.
• Ready markets for power and fertilizer in the Region.
• Products are all imports substitutions.
17
MINING PROJECTS and OPPORTUNITIES
for INVESTMENT 2017
CONTACTS:
DR ING. F. KARONGA
ACTING GENERAL MANAGER
ZIMBABWE MINING DEVELOPMENT CORPORATION,
MMCZ BUILDING, 90 MUTARE ROAD,
MSASA, HARARE,
ZIMBABWE
Telephone : +263 4 487014-20, +263 772 165 525-7
e-mails fkaronga@zmdc.co.zw
Mr. S. GAIHAI,
BUSINESS DEVELOPMENT MANAGER,
ZIMBABWE MINING DEVELOPMENT CORPORATION,
MMCZ BUILDING, 90 MUTARE ROAD,
MSASA, HARARE,
ZIMBABWE
Telephone: +263 4 487014-20, +263 772 165 525-7
e-mails: sgaihai@zmdc.co.zw
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