Zimbabwe has been expanding its mining sector in an effort to end two decades of economic stagnation.
The country's finance minister said the government plans to package and list state-owned mining assets to raise cash and pay down government debt.
In 2020, the Zimbabwean government created Kuvimba Mining House Ltd., or KMH, into which it injected state-held Mining assets such as platinum, gold and nickel.
The country's State Pension Fund and Sovereign Wealth Fund own 65 percent of Kuwemba Mining.
The government intends to use the company's revenues to meet a long list of funding demands, ranging from compensating white farmers for infrastructure on farms confiscated 20 years ago to boosting pensions.
"In the next two years, it will be a very profitable group," Mthuli Ncube, the finance minister, said in an interview last week.
When Kuwemba is eventually listed, the government will sell part of its stake."
Library and [Kuvimba in shauna (Shona language) means trust. Company to create, is the government start mining the latest attempt. Although "localization" requirements and frequent changes of exchange rate system makes many enterprises lack of desire to invest in Zimbabwe, but investors from Russia, Cyprus and Nigeria are currently Zimbabwe mining platinum ore exploration. Zimbabwe has the world's third largest platinum reserves.
"Hard currency"
In addition to a platinum joint venture with Russian investors, Kuvemba also plans to revive production at old mines and develop new ones.
The minister said Kuwemba planned to list on one US dollar-denominated stock exchange as well as on another (hard currency) exchange.
The rest of the company is owned by a consortium led by David Brown, former chief executive of South Africa's Impala Platinum Holdings Ltd., he said.
He gave no details of the arrangement.
"We are looking for a good person with a good track record with international skills," Nkubi said.
Kuwemba's money will also be used to support entrepreneurs, compensate those who lost their bank deposits when the currency collapsed, fund veterans of the liberation war of the 1870s and provide seed capital for a new pension fund for government employees, he said.
Zimbabwe's initial refusal to compensate white farmers soured relations with multilateral lenders and the West.
Now the country has agreed to pay 3.5 billion dollars in compensation and plans to hire consultants to help it raise the money.
"The creation of Kuwumba shows that the government has put something on the table, that it is engaged," Mr. Nkubi said.
"Everything now depends on the appointment of advisers and then the fundraising will start in earnest."
