ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 1

(i) Abandoned , dormant and forfeited mines , and current mines ;

(ii ) Excellent farmer/miner relationships ;

(iii) Good rail and road network plus excellent telecommunications network ;

(iv ) Up to date Geological Maps ;

(v ) Exploration Maps showing current Exclusive Prospecting Order ; Exclusive

Prospecting Licences , and current Reserved Areas ;

(vi) Comprehensive Mining Legislation ;

(vii) Environmental Impact Assessment Studies ; and

(viii) Talks of Tax Incentives etc . etc.

( Prepared by E.A. Smythe LLB ,(Retired Mining Commissioner ).
ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 2]
Abandoned Mines : ( See Sections 258 to 273 of the [Ch.21.05 ] Act ).

Q. Why are mines abandoned ?

R. Several reasons including mine accidents; or the mine was originally registered
for speculative reasons ; water or flooding problems ; labour disputes ; cash flow
problems ; geological anomalies; erratic electricity supply ; lack of adequate
infrastructural development at the time when mine was originally registered ; lack
of essentials like lubricants , cyanide, zinc shavings etc ; other reasons .

(Prepared by E.A. Smythe LLB ,(Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES [ 3 ]
Forfeited Mines : ( Sections 255 to 273 of Mines and Minerals Act [ Ch. 21.05 ]).

 Q. Why are mines forfeited ?

 R. Mines are forfeited for “....failure to obtain [an ] inspection certificate

for the block [ of claims ] ..” ( See section 260 of the Act )..

(Prepared by E.A. Smythe LLB ,(Retired Mining Commissioner ).

ZIMBABABWE MINING INVETSMENT OPPORTUNITIES : [4 ]
Dormant Mines :

Q. What are dormant mines ?

R. Dormant mines are registered mines that are not being worked because of a variety of reasons such as that the dormant
mine may be part of a unit of mines that were pegged and registered as potential ore reserves ; or the dormant mine is not
being worked because of cash flow problems; and/or geological anomalies ; and/or the mine was registered in remote area
at a time when there was no access to water ; and/or no access to electricity ; and /or no access to road and rail networks ;
and/or the dormant mine was registered for speculative reasons .

Dormant mines in Concession areas may be expropriated . ( See section 115 of the Mines and Minerals Act [ Chapter 21 : 05 ]
).

(Prepared by E.A. Smythe LLB ,(Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 5 ]
 Current Mines :

 Q. Why do current mines appear to be underdeveloped ?

 A. Several reasons , including geological anomalies ; and /or cash flow

problems; water and flooding problems ; and /or lack of essential items like
lubricants , cyanide , graphite , zinc shavings ; inadequate and/or
inappropriate mining equipment ; and/or erratic supply of electricity ;
and/or the mine may be located in a remote area that is not serviced with
good road and /or rail infrastructure ; and/or lack of technical expertise ;
and/or labour disputes ; poor working conditions; and/or inadequate
health and safety facilities ; and/or poor accommodation for all mine
workers ; and/or poor welfare and community facilities ; etc . Etc


.
( Prepared by E.A. Smythe LLB, Retired Mining Commissioner )
ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 6 ]
 Farmer/Miner Relations :

 The Ministry of Mines encourages good farmer/miner relationships.

 http://www.newsfromafrica.org/newsfromafrica/articles/art_786.html

 ( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [7]
Infrastructure :

Up to $ 1 billion to be spent to improve regional road network in

Botswana,Democratic Republic of Congo, Malawi , Mozambique, South Africa ,
Tanzania , Zambia, and Zimbabwe:

.... http://www.guardian.co.uk/world/2009/feb/19/africa-transport-network-britain

....talks of $7 billion rail network linking Botswana, Zimbabwe and Mozambique :

http://www.worldconstructionnetwork.com/news/zimbabwe_botswana_and_mozamb
ique_ink_access_agreement_to_build_rail_link_100908/

Talks to spend up to $ 280 million to upgrade telecommunications network :

http://www.balancingact-africa.com/news/en/issue-no-464/money/telone-seeks-us28
0-million-for-infrastructure-development-in-zimbabwe

 ( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 8]
The Great Dyke : North to South orientation
 About 530 Km long craton with rock
formations estimated to be about 2 billion years
old ;
Rich in platinum , gold and chrome ;
 http://earthobservatory.nasa.gov/IOTD/view.php?id=4414

Large map of Great Dyke :

 http://earthobservatory.nasa.gov/images/imagerecords/4000/4414/dyke_ast_2000242_lrg.jpg

 ( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [9]
Acquistion of Mining Title :
in terms of the Mines and Minerals Act [ Chapter 21.05 ] :

 Base metal and Precious metal Blocks ( see Part IV Sections 20 to 62 );

 Exclusive Prospecting Reservations ( See Part VI Section 86 to 119 ) ;
 Transfer of Mining Title ( Part XVII Section 274 to 284 ) ;
 Mining Leases ( Part VIII Section 135 to 157 ) ;
 Special Mining Leases ( Part IX Section 158 t0 168 ).
 Tribute Agreements ( Part X VIII Section 283 to 290 )
 Special Grants ( See Part XIX 291 to 296 ) ;
 Special Grants for Coal , Mineral Oil and Natural Gas (see Part XX section
297 to 307 );
 ( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).
Zimbabwe Mining Investment Opportunities [ 10 ]
EXTRACT FROM INTERNET as at 1st November 2010 about 0945 hours : See Science Direct Resources

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VBM-3SX1JNT-
5&_user=10&_coverDate=06%2F30%2F1997&_rdoc=1&_fmt=high&_orig=search&_origin=search&_sort=d&_docanchor=&view=c&_searchStrId=1523579178&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=f1c147a1
79f17958ed907470b117a54c&searchtype=a

“.....John Hollaway (John Hollaway and Associates, 6th Floor, Beverley Court, 100 Baker Avenue, Harare, Zimbabwe .
Available online 10 June 1998.).
Abstract

“.........Zimbabwe's economic geology features hydrothermal deposits and therefore, while its
mines are generally small, it has several hundred formal operations. Initially the mining law was
exceptionally facilitative by African standards, although it has since been rendered more sensitive
to other rural interests. At first, too, the colonial administration imposed crippling rents on
output but their self-defeating nature led to their abandonment. Three main features of mineral
policy have emerged since independence in 1980: (1) state participation in production and
supervision of sales; (2) specific regimes for some artisanal mining; (3) ad hoc arrangements for
the legal and financial environments of major foreign investors; and (4) the withdrawal of
mining-specific tax benefits. Zimbabwe has been seen as a model for other African countries with
similar resources but with negligible formal mining sectors. However the trends above are all in
the direction of conditions already in place in such countries......”.
( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).
ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 11 ]
Old Mines Re-opening :

http://www.4castresearch.com/mining-sector/gold/250-zimbabwe-gold-mines-begin-to-re-open-but-un
certainty-stifling-big-investment.html

Signs of Economic Recovery :

http://www.tradeinvestafrica.com/feature_articles/227486.htm

( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES [12]
Environmental Impact Assessment ;
Siting of Works plan approved in terms of section
Avoidance of toxic waste spillage into rivers or
streams ;
Funding for adequate protection of dangerous mine
workings to ensure the permanent safety of livestock
and persons ;

 ( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 13 ]
Projected growth rate by December 2010 8.7 %

 http://www.talkzimbabwe.com/biti-revises-growth-projections-for-the-third-t
ime-cms-772
ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 14 ]

EXTRACT FROM ARTICLE WRITTEN BY MUNYARADZI MUGOWO See NEWSDAY 8TH JUNE , 2010

“......Chamber of
 Mines of Zimbabwe (CMZ) calls for larger mines :

The Chamber of Mines of Zimbabwe (CMZ) wants the government to consider the merits of promoting large mines
that enjoy economies of scale and greater access to capital and markets, as opposed to numerous small projects
exposed to stifling costs of production.

The association of miners, “for now”, is offering just 15% equity to local investors wishing to buy into mining
operations instead of the 51% demanded by the government in a indigenisation law until the country builds its own
capital.

Record hyperinflation destroyed Zimbabwe’s savings base comprising banks, insurance companies and pension,
mutual funds and wealth funds.

“We think initially 15% minimum equity is desirable but in the long term as we build our own capital, it’s possible to
achieve higher equity stakes. Which means it is possible to have even 100% equity being locally owned,” Victor
Gapare, CMZ President, said. ......” .


http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-large r

( E.A. SMYTHE LLB, RETIRED MINING COMMISSIONER ).

ZIMBABWE MINING INVESTMENT OPPORTUNITIES [15 ]
Extract of Article in Newsday 8 th June 2010

Chamber of Mines of Zimbabwe (CMZ) calls for larger mines Article by MUNYARADZI MUGOWO

“In the long run, if Zimbabwe is to benefit from its mineral endowment, it must attract
serious risk capital and also build bigger mines which enjoy economies of scale.”

He added that over 50% of Zimbabwe’s mineral rights were in the hands of blacks and
government-owned institutions, particularly the Zimbabwe Mining Development
Corporation, Minerals Marketing Corporation of Zimbabwe and Hwange Colliery
Company Limited.

“What must happen is that the people holding these mineral rights must look for
partners who will bring in capital and develop these mineral rights.” ( Victor Gapare,
CMZ President ).
ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [16]

“.........The government has already signaled it would accept a diluted “indigenisation” model proffered by the sector,
which seeks to balance the “aspirations of the country and the needs of investors”, to avoid freezing new investments.

The government in January published a set of general regulations on indigenisation and economic empowerment, which
put into force the Indigenisation and Economic Empowerment Act triggered investors to plans to expand or open new
mining investments in the country on worries of expropriation.

The policy shift effectively supplants indigenisation with empowerment through a system of “equity-equivalent” credits,
which dilutes the minimum equity demand and removes the ceiling initially imposed on foreign ownership.

The law, passed roughly two years before, primarily seeks to warehouse at least 51% of large mines and other firms for
local investors as an instrument of economic empowerment.

Foreign-owned entities, including those listed on the local bourse, have up to five years to phase in the equity changes
and until end of June to disclose their shareholding to the Ministry of Youth, Indigenisation and Economic
Empowerment.

Under the “broad-based empowerment” model the Chamber has proposed, direct equity would be limited to 15% with
equity-weighted credits making up the balance up to the statutory threshold of 51%.......” .
( Extract from Newsday 8th June ,2010 Chamber of Mines of Zimbabwe (CMZ) calls for larger mines Article by MUNYARADZI
MUGOWO ) .
http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-larger