Loading ...Zimbabwe gold mines lure investor despite economic ruin
Zimbabwe’s biggest gold mines are being snapped up by Mauritius-based Sotic International Ltd. as the price of bullion soars to the highest in more than eight years.
Landela Mining Ventures Ltd., which is controlled by Sotic, bought two of Zimbabwe’s gold mines this year. The newcomer is targeting six more mines, including four idled state-owned operations, said Sotic Chief Executive Officer David Brown. That expanding mining portfolio has strategic importance as gold is the biggest source of dollars in a nation facing foreign-currency shortages.
“Gold is a commodity with potential positive impacts,” Brown said in a phone interview from Johannesburg. “We want to grow the resource base to provide upside for both company and country.”
Brown said Sotic is backed by Cayman Islands-registered Almas Global Opportunity Fund, but he declined to name other investors. Last year, Sotic acquired control of Bindura Nickel Corp., Zimbabwe’s biggest nickel operation.