Government`s leap of faith pays off ….as Kuvimba pays out US5.2 million dividend

by | Jun 23, 2021 | Business | 0 comments

Nevanji Munyaradzi Chiondegwa

Kuvimba Mining House, the company that now runs BNC, Freda Rebecca and Shamva Mines, has managed to pay a maiden dividend amounting to US$5.2 million to its shareholders who include Government.

Kuvimba Mining House was established as part of the President Mnangagwa’s efforts to resuscitate mines that had been closed over the years and will cement the group’s footprint in the extractive sector.

Kuvimba Mining House has three operating gold mines under Freda Rebecca namely Freda Rebecca Gold Mine, Shamva Gold Mine and Jena Mine.

The nickel operating mine is Trojan Nickel Mine under Bindura Nickel Mine while the platinum asset is the Darwendale Platinum project operating under Great Dyke Investments. They also have a chrome venture which is Zimbabwe Alloys Limited.
In January 2021, Finance and Economic Development Minister Prof Mthuli Ncube said: “Government has been informed by the management of Kuvimba Mining House that it has made an offer to acquire Globe and Phoenix Mine.”

The Government, as the majority shareholder in Kuvimba has endorsed the dividend payout transaction and looks forward to this new asset contributing to the group.

The shareholding structure of Kuvimba Mining House has Government owning 65 per cent while the other 35 per cent is held by international partners fronted by David Brown.

The 65 per cent Government shareholding in Kuvimba Mining House is split as; Government pension fund, War Veterans Fund, Pensions Compensation Fund which was created to compensate Pensioners for losses due to Feb 2019 currency reforms, Depositors Compensation Fund which was created to compensate depositors who had $1000 and below in banks when currency reforms took place in Feb 2019, Youth Support Fund which is administered through National Venture Fund, Women’s SME Support Fund which is administered by National Venture Fund) and the Sovereign Wealth Fund, for future generations administered by the government,”

The dividend payout is split as follows
• Sovereign Wealth Fund of Zimbabwe: US$520K
• Public Service Pension Fund: US$560K
• Deposit Protection Corporation: US$400K
• IPEC: US$400K
• Datvest Nominees: US$1m
• National Venture Capital Company: US$600k
• Government: US$1.720m

Kuvimba Mining House’s gold mining asset, Freda Rebecca Mine, recently surpassed a 20-year production record after it produced 300kg of gold in May this year alone.

In early June this year, Minister of Mines and Mining Development said more than 3 500 jobs have been created since the establishment of Kuvimba Mining House last year.