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InDABA ReVIeW

rency is not accepted outside of the country’s borders, causing
foreign exchange and repatriation headaches.
Mnangagwa has identified mining as the country’s best
chance of reversing its economic decline. Last year, the Gov-
ernment launched its 12 Billion Mining Industry Vision 2023
policy, designed to lift mining revenues from $US2.7 billion in
2017 to $US12 billion by 2023.
Zimbabwe is no mining backwater. The country has a long
history of large-scale mining and currently boasts gold, PGM,
chrome and diamond operations with Impala Platinum Ltd
subsidiary, ASX-listed Zimplats Ltd, posted a post-tax profit of
$US144.5 million for FY2019 having produced 549,320oz 4E
PGMs.
Hosack said the Government’s public support for Arcadia’s
development was backed by regulatory action.
“Arcadia was granted special economic zone status in Feb-
ruary 2019 and no further approvals are required – Arcadia is
shovel ready.”
While infrastructure and power would appear major obsta-
cles for development, Barnard said Prospect was blessed in
both regards.
“Zimbabwe has a mature mining industry and all relevant
skills are available in country to operate the mine and process-
ing plant. The mine is within 20km of the Harare-Beira corridor
which is a well-maintained toll dual carriage road system run-
ning all the way to Beira, our main export port.
“We have also signed a secured power supply contract with
the Zimbabwe Electricity Supply Authority which will ensure we
have security of supply of power,” he said.
The fiscal regime also contains benefits. Arcadia’s special
economic zone (SEZ) status grants the project a corporate in-
come tax holiday for the first five years of operation and exemp-
tion from non-resident withholding tax on dividends, services,
royalties and fees as well as import duties on raw materials and
capital equipment.
The Treasury has also approved an export tax exemption for
un-beneficiated lithium for five years.
The SEZ status also allows Prospect to hold and transact
with foreign currency.
The SEZ license simplifies Prospect’s ability to make pay-
ments to and from suppliers and customers,” Hosack said. “So-
phisticated investors are familiar with Zimbabwe. We have suc-
cessfully raised funds on the ASX for this project over the past
four years and we believe there is strong equity finance support
to fund the project,” he said.
Prospect is confident the regulatory certainty will allow it to
develop Arcadia relatively free of government interference.
Convincing investors and financiers it can do so will be crucial
to its chances of success.

Prospect has drilled 26,000m at Arcadia

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