18 January 2018
   
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
Moyo claims CIO spy killed during coup
Activist wants ED, Chiwenga at Hague
Priscilla: Erection at 45 like winning lottery
Outrage as top soldier threatens 2008 terror
ED era to yield 'good things', says Pari
Man grows dagga to cure heart, caged 18mths
MORE NEWS
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
MORE BUSINESS
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
MORE SHOWBIZ
Caps bid to rehire star forward Nhivi
Mourinho says 'relaxed' about Sanchez
MORE SPORTS
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
MORE OPINION
 
Economy: the need for a paradigm shift
Trump rage ignores truth: A response
MORE COLUMNISTS
 
 
ACR turns to gold after Marange snub
23/04/2013 00:00:00
by BDay I Business Reporter
 
 
RELATED STORIES
ACR plans diamond ruling appeal
ACR raises US$3m, replaces Cranswick

AFRICAN Consolidated Resources is focusing on a gold project, as now is not the right time for "engaging" with the State over the decision to strip the company of the multibillion-dollar Marange diamond field.

"Marange is water under the bridge," said CEO Craig Hutton.

"Marange has been a problem and a disappointment for us, but we haven’t lost the company. I do believe that we will come to an amicable resolution."

Zimbabwe seized the diamond fields, discovered by De Beers, from UK-based African Consolidated in 2006.

The Marange diamonds are being dug by China’s Anjin Investments with Mbada Mining, which is closely held by South African and Zimbabwean investors. All firms operate 50-50 ventures with state-run Zimbabwe Mining Development Corporation (ZMDC).

"We certainly want to, at some point in time, engage with the government and come to an amicable resolution," Hutton said.

"We don’t think the time right now is appropriate to be engaging on Marange. We will focus our efforts on our other core assets where we can deliver value."

African Consolidated is developing the Pickstone-Peerless gold mine. The project, scheduled to begin output in the first quarter, will produce 15,000oz to 20,000oz of gold before growing to as much as an annual 80,000oz two years later.

It is "our cornerstone project, our company maker", said Hutton. "I don’t think the political situation is something that is not manageable. That is why we are still there."

The company said projected capital expenditure towards commissioning a 20,000 tonne per month operation at the site would reach about US$17 million and committed not to resort to shareholders for funding.

“Sources of funding to minimise any Recourse to shareholders are likely, in addition to the company's current cash resources, to include Department of Trade and Industry project grant from South Africa, sale of the Harare office, cash flow from the trial mining, potential sale of tailings, forward sale agreements and/or debt finance. Cash resource at 31 March 2013 was $11 million,” the company said in a presentation on Monday.

Management also said they planned to present a plan to the government for complying with the country indigenisation laws which require majority local control and ownership of foreign businesses operating in the country.



Advertisement

African Consolidated also has nickel projects in Zimbabwe, as well as copper and rare-earth deposits in Zambia.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker