Wakanda News Details

Landela buying spree raises stink

BY CLIFF CHIDUKU PRESIDENT Emmerson Mnangagwa marked his triumphal entry into the citadel of power in 2017 by declaring that he would open the country up for business, thus promising a departure from the ruinous policies of his predecessor the late Robert Mugabe who he upstaged in a military coup. Optimism engulfed the southern African country as Zimbabweans braced for the possibility of a break from the past and the mantra: Zimbabwe is open for business became a slogan. Investors trooped to Harare to scout for opportunities, but to their surprise, they found the same faces of the old epoch circulating overhead like vultures angling to swoop over a prey. Mnangagwa’s approach was anchored on luring investors to resuscitate the economy which had been in stagnation for a long time. It was clear that the country’s vast mineral resources would be a magnet to investors, both well-meaning and unscrupulous. Investors came in their hordes, far and wide from Russia, China, United Arab Emirates, South Africa and United Kingdom. Locals could also not be left out. To put icing on the cake, the government also promised the privatisation of State-owned entities which had been under-performing and bleeding the economy. The government owns operations in mining, telecommunications, agriculture and manufacturing. On the local front, there has been one investor who appears to be scooping anything in his way — Landela Mining Ventures. Landela, owned by business tycoon Kuda Tagwirei, has been on a buying spree. Tagwirei is one of Mnangagwa’s advisers. Earlier last year, Landela completed the takeover of Metallon Corporation’s Shamva Mine, formerly owned by South African businessman Mzi Khumalo. In October 2018, the government put some Zimbabwe Mining Development Corporation (ZMDC) mines on sale. Within a month of inviting bids, 151 bidders had shown interest. However, by March 2019, the government withdrew the sale, saying it had not attracted enough quality bids. While Landela was not one of the original bidders, government later announced that Tagwirei’s firm had won the bid. Before inviting bids, the government engaged German consultancy firm DMT GmbH & Co to look into the state of the assets and determine how ZMDC’s fortunes could be turned around. DMT GmbH & Co produced a report noting that: “ZMDC was unlikely to get investors as the State had too much involvement in the mining industry…” Last July, Landela entered into an agreement to acquire four idle gold mines under State-run ZMDC, among them Jena in Silobela, Elvington in Chegutu and Sabi in Zvishavane. Since 2014, these assets have been lying idle owing to financial constraints and lack of markets. Landela chief executive David Brown, former Impala Platinum Holdings CEO, said the deal was a game-changer. “We want to become a significant player in the gold industry in Zimbabwe,” said Brown, who is also chairman of Great Dyke Investments, a Russian-backed company that is developing one of Zimbabwe’s biggest platinum mines. “We have a significant amount of resources that are avail

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