en.Wedoany.com Reported - On March 31, China South Mining Group stated on a public platform that advancing the Zimbabwe gold mine project is a significant initiative for the company to implement its "Three Expansions and One Optimization" strategy and accelerate its extension into the overseas resource operation sector. This move holds positive significance for optimizing the revenue structure and enhancing overall profitability.
According to disclosed information, the Phase I of the Brownhill Gold Mine Project primarily focuses on mineral extraction of surface oxide ore, utilizing heap leaching technology. The overall mining cycle for the project is expected not to exceed one year. Currently, project operations are generally stable. However, specific production output and revenue may still be affected by multiple factors such as market conditions and resource availability. The company will promptly disclose relevant progress in subsequent periodic reports as required by information disclosure regulations.
Recently, Nanchang Mining Machinery Group Co., Ltd. (referred to as "South Mining Group")'s wholly-owned subsidiary in Zimbabwe, Nanchang Mineral Systems Zimbabwe (Private) Limited, formally signed the "Brownhill Gold Mine Project Phase I Surface Oxide Ore Heap Leaching Project Operation Cooperation Agreement" with Sucpass Gold Resources (Pvt) Limited. The total contract value is approximately USD 36.4 million, marking a phased achievement for the company in deepening its presence in the African market and advancing its "Three Expansions and One Optimization" overseas strategy.
As stipulated in the agreement, South Mining Group's Zimbabwe subsidiary will be fully responsible for the mining and heap leaching processing of the surface oxide ore from Phase I of the Brownhill Gold Mine located in the Mberengwa region of Zimbabwe. The project adopts a revenue-sharing model based on finished gold product sales. The total estimated sales revenue is approximately USD 36.4 million. Of this, the mineral rights holder, Sucpass Gold, will receive a 25% share (approximately USD 9.1 million), while the operator, South Mining Group's Zimbabwe subsidiary, will receive a 75% share (approximately USD 27.3 million). Final proceeds will be determined based on actual settlement conditions.
It is noteworthy that South Mining Group indirectly holds a 28% equity stake in Sucpass Gold through its wholly-owned Singapore subsidiary, NMS International Holding Pte. Ltd., making this cooperation a connected transaction. During project implementation, Sucpass Gold is responsible for providing the mining rights and operational area. South Mining Group's Zimbabwe subsidiary bears all investment for project construction, operation, and management, including costs for personnel, equipment, materials, vehicles, camp construction, power supply, and supporting facilities, and conducts independent operational accounting.
This cooperation is a key implementation project for South Mining Group's ongoing advancement of its "Three Expansions and One Optimization" strategy (namely, expanding the aftermarket, overseas market, and metal mining market, while optimizing the customer structure of the aggregate business) since 2024. Zimbabwe is rich in mineral resources. According to official data, approximately 60% of its land area is covered with critical mineral resources, with over 40 types of minerals, including gold, having been proven. This region is a key overseas focus area for the company.
In fact, South Mining Group has already established a relatively solid foundation in the African market. As early as 2017, the company set up an African branch, with its service network covering Southern, Central, and West Africa. It also established a large-scale warehousing base in Johannesburg, South Africa, forming a service system that radiates across regional markets. In 2023, the company further established its Zimbabwe subsidiary, providing strong support for deepening its expansion in the local market.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
