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TA still wants to mine

Eric Chiriga

TA Holdings Ltd (TA) says it is still interested in venturing into mining. TA executive chairman Shingai Mutasa confirmed that his company was interested in investing in the mining sector.

“Yes we are considering investing in the mining sector. If opportunities which add value to our portfolio emerge we will definitely take them up,” Mutasa said.

He said TA were giving first priority to the local mining industry as it was cheaper when compared to countries such as South Africa.

Mutasa said TA were only interested in gold and platinum mining.

Local analysts, however, said TA’s venture into mining would be a good move as the sector is performing very well.

“Platinum and gold have good prices and TA is guaranteed good returns on their investment,” an analyst from Tetrad Securities said.

Gold and platinum are currently the largest earners on the minerals market with gold trading at about US$404, 80 per ounce and platinum US$860,50 per ounce.

Since 2001, platinum has emerged as one of the major foreign currency earners, overtaking gold.

The mining sector still continues to attract foreign investment despite the economic crisis gripping the country.

South African mining mogul Mzilikazi Khumalo recently said he would invest R100 million in the local mining industry if he were guaranteed healthy remuneration from the deal.

He is already in lucrative deals at Mettallon Gold with John Mkushi and fugitive banker Mthuli Ncube.

TA is a regional investment holding company with interests in insurance, agrochemical sector and hotels mainly in the Southern African Development Community.

TA was listed on the Zimbabwe Stock Exchange in 1964 and now has some 6 300 shareholders.

Last year foreign investors held 7% in value of listed shares.

TA offloaded Blue Ribbon Foods (Pvt) Ltd during the first half of last year and the proceeds were partially used to liquidate the group’s foreign debt.

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