Taurai Mangudhla and Tinashe Makichi
MASHAVA – SMM Holdings plans to inject $75 million into the business and bring production at its King and Shabani mines to full capacity of 120 000 tonnes of asbestos annually.
More investment is envisaged on prospecting for chrome and processing of existing dumps, CEO Chirandu Dhlembeu said during President Emmerson Mnangagwa’s tour of the company’s King mine in Mashaba this morning.
SMM and Gaths Mine in Mashava was shut down in 2004 following Government’s problems with owner Mutumwa Mawere. It has gone through several litigation cases since as Mawere tries to regain ownership of his empire. President Mnangagwa said the mines were re-opened after Government won 22 out of 23 litigation cases. Only one case is still pending.
“We hope by this time next year both mines will be fully operational not only to contribute to the social well-being but the fiscus” he said.
Dhlembeu said nickel, chrome and manganese have been found in the dumps with lab tests expected to be concluded in December to guide the company’s decision on recovering minerals from the dumps.
Currently a rig is prospecting for chrome around King Mine claims.
Dhlembeu said King mine requires a $20 million investment to operate at full capacity and a further $15 million to bring production to 75 000t annually.
Currently a dewatering process is ongoing. Dewatering, originally expected to be completed in October, will be delayed by a further two months due to lack of foreign currency.
The SMM executive said the company is preparing to go underground and is currently fabricating at King Mine with expectations to dewater the mine to mineable levels.
Shabanie mine was now operational, and $2 million has already been invested and an additional $40 million capital injection will grow capacity to 45 000t annually.
Dhlembeu said the company now employs 400 people at King mine with 1000 more expected at capacity.
Shabanie and King mines have been operating since 1908 and have a combined 35 year proven audited resource. More land is available for exploration.
Dhlembeu said the world demand for asbestos is at 1.4 million tonnes annually and Zimbabwe at peak provided 10 percent. As such, SMM sees great potential for the business going forward.
