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About Reclam Group and Zimbabwe
Reclam Group enjoys a long and mutually beneficial relationship with Zimbabwe, its government, people and corporations/entities.
Since the 1990’s, Reclam and the Reclam Group have invested over USD15 million in plant and equipment necessary for the mining and recovery of metal from the waste dumpsite of the Zimbabwe Iron and Steel Corporation (“Zisco”). The Reclam Group’s expertise to mine and recover this metal has contributed millions of dollars in income for Zisco.
In 2004, Reclam submitted a proposal to the Government of Zimbabwe for a 50% equity stake in Zisco for a value of up to USD70 million to enable Zisco to reach production capacity.
In 2005, Reclam made technical expertise available to Zisco to assist Zisco to improve production processes with a view to enabling Zisco to operate optimally.
In July 2007, Reclam Group and the National Railways of Zimbabwe (“NRZ”) concluded a MOU encompassing the provision of financial assistance to NRZ to upgrade and expand its fleet coupled with a scrap supply to Reclam Group from NRZ of scrapped locomotive components.
In 2007, Reclam Group was part of a consortium that registered an interest in purchasing diamonds from Zimbabwe as well as participating in mining activities in Marange.
In 2007 and 2008, Reclam Group entered into detailed discussions regarding an integrated transaction with the NRZ, Zisco, Hwange Colliery Company Limited (“Hwange”) and the Minerals Marketing Corporation of Zimbabwe. Detailed due diligence was conducted and a proposal was made to the Minister of Trade and Industry to acquire a 51% stake in Zisco against a USD700 million phased investment commitment.
In 2008, Reclam Group engaged with Hwange to provide finance to and enter into joint venture projects with the coal producer, and entered into a MOU with Hwange to increase production at Hwange on a sustainable basis.
In 2008, Reclam Group participated in the privatisation offer for Zisco and submitted a bid for the purchase of Zisco.