Lynx Mine to reopen

by | Mar 31, 2021 | Business, Local News | 0 comments

By Nevanji Munyaradzi Chiondegwa

Linx Mine, a graphite producing mine in Karoi that ceased operations in 2016 is set to reopen after Government approved a joint venture between Zimbabwe Mining Development Corporation and Fossil Mine.

The reopening of Lynx Mine -which had shutdown due to severe financial and other operational challenges in 2016- was announced at a post-cabinet media briefing by Information and Broadcasting Services Minister Monica Mutsvangwa.

Government approved the contract mining agreement between Fossil Mine and ZMDC which was presented by the Chief Executive Officer of the Zimbabwe Investment and Development Agency Tawanda Douglas Munatsi.

The mine which at its peak had 260 workers and was a joint venture between ZMDC and Graphite Kropfmühl GmbH of Germany was Zimbabwe’s sole graphite producer.

It needed US$5 million then to fund plant upgrades and mining equipment acquisitions. It was placed under corporate rescue proceedings on February 17th, 2021 under management of top corporate rescue practitioner Cecil Madondo.

Graphite is a mineral used in nuclear reactors, battery terminals and consumer electronics. Prices for graphite on the world market had plummeted leading Kropfmühl GmbH to offload their stake onto the market ending 50 years of operations in Zimbabwe but are now on a turnaround.

Fossil Mines has been engaged in contract mining before, at the Fredda Rebecca and Shamva Gold Mines. The production contract will run for a period of 10 years, with the possibility of extending operations to 18 years upon further exploration. The project is expected to generate employment and earn foreign currency, given the improvement in graphite prices on the international market.