After losing an international arbitration lawsuit involving terminated nickel and platinum agreements between a private firm and the state miner more than a decade ago, Zimbabwe has been ordered to pay a $70 million debt.
In a Sept. 15 letter to Zimbabwe’s Secretary for Finance and Economic Development, George Guvamatanga, companies affiliated to Amaplat Mauritius Ltd. made the proposal, which was viewed by Bloomberg.
The alternative is for Zimbabwe Mining Development Corp.’s assets to be confiscated after the 2019 judgment.
The case illustrates the difficulties that Zimbabwe has as it attempts to leverage its mineral resources to relaunch a sluggish economy after years of unpredictable policy decisions and asset seizures eroded investor trust.
Over the previous three years, investors from Russia, Cyprus, and Nigeria have had ambitions to develop platinum mines, but little progress has been achieved.
There are also significant gold and chromium resources in the nation.