The Central African Mining Expropriation Company (Camec), a company from South Africa, announced this week that it will construct a platinum mine in Zimbabwe, and plans to start producing 120 000 ounces of platinum per year in 2009.
The South African company, which now owns various mining operations in Zimbabwe, bought mining claims in the region through a company called Lefever Finance and incorporated under the law of the British Virgin Islands. Camec bought the BVI corporation from a company called Meryweather Investments to which it paid US$5mln in cash, and issued 215 mln of new Camec shares worth about US$238 mln. The BVI-based Lefever was the owner of 60% of a Zimbabwean company called Todal Mining, which held all the rights on the mines. The remaining 40% of Todal Mining is held by the Zimbabwe Mineral Development Corporation (ZMDC).
Camec also published statement accompanying its fiscal results for the year to the end of March that, where expressed confidence that they can bring the mine into operation during the year 2009. It was added in the report that “Todal has negotiated the right to export platinum from Zimbabwe, and has also secured agreement to allow it to expatriate the profits generated by its mining operations in the country.” The activity in Zimbabwe is of strategical importance to Camec, in its plans to become a leading African investment and production company.
Camec lent to Lefever US$100 mln, to enable the company “to comply with its contractual obligations to the Government of the Republic of Zimbabwe.” Repayment to Lefever is to be made from the ZMDC’s share of dividends from Todal.