Gina Rinehart Makes a $3.2 Million Bet on Gold
Australian mining tycoon Gina Rinehart is looking for her pot of gold at the end of the rainbow.
The queen of iron ore has agreed to invest $3.22 million into the Four Eagles Gold Project, a joint venture between Catalyst Metals and Providence Gold and Minerals. The agreement will see Gold Exploration Victoria, a subsidiary company of Rinehart’s Hancock Prospecting, spend $1.6 million for a 25 percent stake in the project, which will then be repeated to reach a 50 percent interest in the asset.
Through a spokesman, Mrs Rinehart said she was “committed to investing in Australia and the mining industry at a time that many others are winding back and or going overseas.”
Located 70 kilometers north of Bendigo in central Victoria, the Four Eagles Gold Project was discovered in 2010 by Providence Gold and Minerals. Going forward, Catalyst will continue to manage and maintain its equity in the project, while Providence would receive a 2.5 percent royalty entitlement.
“This is an important milestone for the company and provides the opportunity for extensive drilling on the large Four Eagles gold footprint in the next two years without any change in Catalyst’s project equity or dilution to Catalyst shareholders,” the firm’s technical director, Bruce Kay, said in a statement.
"Catalyst will be managing the program, Providence will still be very much involved and we will still continue to develop good relationships with local landowners and grain farmers.”
The site has historically been a hot spot for gold. During the 1800s, miners extracted roughly 22 million ounces of gold.
"I think they hopefully see the big potential of the area. Bendigo was historically the second richest gold field in Australia, chances are that you’re going to find gold there," added Kay. \
Read the full press release here.
Zimbabwe targets £8.8bn mining industry by 2023
Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.
Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented.
Mutsvangwa was speaking at a post-cabinet media briefing on December 15.
She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.
For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.
Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.
The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.
Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.
When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.
He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.
Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said.
Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.