ASX-listed battery metals project developer Prospect Resources has given a thumbs up to President Emmerson Mnangagwa’s administration economic policies for spurring the entity’s growth.
The mining company’s managing director, Sam Hosack told a top mining mouthpiece Monday that since Mnangagwa’s takeover the company has moved from strength to strength
He described Zimbabwe as a highly progressive country with helpful government structures.
“When we have gone to Chitando, he has always been very welcome and he has helped us shape our interactions with the government to the extent that we have benefited substantially from their recent initiatives that they are launching to try and cement the ‘open for business’ mantra,” says Hosack.
“Mnangagwa’s endorsement, his apex incentive in the country is the SEZ licence, which we applied for and received, the declaration, and Prospect’s exploration at Arcadia helped Zimbabwe boost its international reputation capabilities,” says Hosack.
He said from 2018 onwards, Mnangagwa has challenged each ministry to find a project of national significance.
The remarks also come at a time when the government has implemented a raft of economic reforms which include a cutback in unbudgeted government expenditure and other strategies which have resulted in the slowdown of inflation from a high of 837% to the current 66%.
The introduction of the Reserve Bank of Zimbabwe Foreign Exchange Auction platform has also eased off pressure from the parallel market leading to relatively stable premiums on the parallel and formal markets.
Said Hosack,:“The two ministries that were putforward to identify projects of national significance were the Ministry of Mines and Mining Development, and Ministry of Tourism. We were able to apply for that.”
He said streamlined mine permitting processes meant Prospect was fully-permitted within a seven-month period.
The top miner’s boss said SEZ declaration has been the “most fundamental shift change” Prospect has benefited from since conducting operations in Zimbabwe, he says.
“We have about 1 000 ha of land, the mine occupies about 200 ha,” he added.
In Zimbabwe, Prospect – through its 100%-owned subsidiary Prospect Lithium Zimbabwe – has developed its Arcadia lithium project, which is an open pit mine with a life of 15.5 years, with proven reserves of 11.3-million tonnes at an average grade of 1.28% lithium oxide and probable reserves of 26.1-million tonnes at 1.2% lithium oxide.