Military stake hampers major Zim mine project

A plan to build Zimbabwe’s biggest platinum mine at a cost of about $4bn is floundering because a military stake in the project has deterred potential backers. That's according to people familiar with the funding discussions. The African Export-Import Bank has the mandate to raise money for the mine, a joint venture between Russian and Zimbabwean investors. While the bank provided $192m of its own funds, meetings in the past year with investors including SA's Public Investment Corporation, the continent’s biggest fund manager, failed to bring additional commitments, one of the sources said. A report on the Fin24 site notes that the sticking point is a Zimbabwe military company that once was subject to US sanctions. Zimbabwe Defence Industries and Zimbabwe Mining Development Corporation together hold 30% of the joint venture, known as Great Dyke Investments, through Pen East, a company they control.