Cabinet has approved the cancellation of six tenders for Zimbabwe Mining Development Corporation (ZMDC) subsidiaries aimed at reviving the entities after the bids failed to satisfy a review process, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa has said.
She said Cabinet had also approved the consolidation of ZMDC into specific mineral commodity groups, namely gold, precious metals, base metals and energy and industrial minerals and a specific subsidiary would be established for each of the mineral groups.
Minister Mutsvangwa said this while addressing journalists on Tuesday during a post-Cabinet media briefing.
She said her Finance and Economic Development counterpart Professor Mthuli Ncube had briefed Cabinet on progress made in the partial privatisation of ZMDC subsidiaries.
“In order to ensure an orderly privatisation process that will generate value for the investor and generate growth in the mining sector in fulfilment of Vision 2030, Cabinet approved the following, the discontinuation of the tendering process with respect to Elvington Gold Mine, Jena Gold mine, Lynx Graphite, Sandawana mines, Mbungu CBM and Gwayi CBM, which were viewed as not being satisfactory and that measures be taken to first enhance their attractiveness of the new tenders,” said Minister Mutsvangwa.
Responding to questions on why the tenders were cancelled, Mines and Mining Development Minister Winston Chitando said they failed to meet required standards.
“Firstly just to state that the tenders had not been awarded. The tender process had involved very thorough technical and financial review of the bids which were submitted. The process did not lead to award of tender. It was at the stage when it was realised that most of the bids were not really to the satisfaction of the review process. The whole idea is really not just to give the best bid but to ensure that we get the best value for the country,” said Minister Chitando.
“Just to give a little bit if perspective. You may be aware that some of the assets in question had no geological information. It is just really to say here is this mine come and bid, so you find that compromise the quality of the bids you get. The whole idea is to ensure that there is a process which ensures we unlock value from the full potential which those assets have.”
Turning to other entities, Minister Mutsvangwa said Cabinet noted with satisfaction the proposed roadmap that would ensure engagement of suitable investors to partner Government in Allied Timbers, a company she said was poised to become a blue chip company.
“Critical milestones on the roadmap include the following, ascertaining the true value of assets under Allied Timbers by urgently conducting independent valuations, regularising the lease agreement between the Forestry Commission and Allied Timbers, affirming by Government of its commitment to protect the gazetted forested land for forestry purposes only by addressing regulatory overlaps and discrepancies and addressing corporate governance issues to ensure stability at management levels at the helm of Allied Timbers,” said Minister Mutsvangwa.
Turning to Harare-Masvingo Beitbridge road projects, Minister Mutsvangwa said following the completion of ongoing work on detours on two sections to be worked by the Department of Roads, work on the rehabilitation of the Beatrice to Chivhu section of the Road was now set to begin this week while rehabilitation of the Chivhu town section was due on March 1 2019.
“Tender evaluation reports with respect to the remaining nine section of the Beitbridge-Harare highway had already been submitted to the Procurement Regulatory Authority of Zimbabwe following which tenders would be awarded,” said Minister Mutsvangwa.Herald