Zimbabwe closes $4bn Platinum Deal with Russia

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Zimbabwe has signed an agreement with Russia to build a new platinum mine in the Southern African country, finalising a deal that has stalled since 2014.

The agreement paves way for the development of a new platinum-group metals mine on a prospect held by Great Dyke Investment, a company jointly owned by a Russian State-controlled company and Zimbabwe’s government, Polite Kambaruma, the country’s Deputy Mines Minister said.

The deal had not progressed since an initial agreement in 2014, Kambaruma said, declining to disclose the shareholding structure. He said the mine and associated infrastructure will cost $4 billion.

“Two weeks ago we finalized the agreement and the Russians are ready to come on the ground,” Kambaruma said in an interview on the sidelines of a conference in Johannesburg, South Africa.

The mine would be built on one of the largest platinum mining concessions in the country. Egypt-based Afreximbank may raise $2 billion to finance building the mine and a smelter at the project, the state-owned Herald newspaper reported last year.

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