Russian plan to dig biggest Zimbabwe platinum mine advances

A project that aims to develop Zimbabwe’s biggest platinum mine has cleared a significant hurdle, with the African Export-Import Bank completing a due diligence study allowing it to proceed with a $500 million syndicated funding program.

While some work has started on the mine, with $100 million spent to date including exploration costs, a significant amount of investment will now be needed if Great Dyke Investments, owned by Russia’s Vi Holding and Zimbabwean investors, is to complete the $2 billion project.
“The project funding structure envisages participation of various types of equity investors as well as lenders,” Alex Ivanov, GDI’s chief executive officer, said in response to emailed questions. “The specific stake to be acquired by potential investors would largely depend on their overall appetite for the project.”

Ivanov confirmed the completion of the due diligence program and said he expects the funding to be in place by year end. Humphrey Nwogo, Afreximbank’s southern African chief operating officer declined to comment, citing client confidentiality.-Bloomberg