Premier African Minerals PLC (LON:PREM) chief executive George Roach has written to shareholders to explain the lack of progress at the RHA tungsten mine and Zulu lithium projects in Zimbabwe.
At RHA, Roach says that it needs the state electricity company Zesa to hook the mine up to the grid after which it expects it can get production underway within four months.
“The outlook for RHA has substantially improved,” he said.
At Zulu, Premier African is still waiting for an Exclusive Prospecting Order or EPO.
The company has written down its investment in Zulu but will seek to get this revised upwards again once the EPO is granted.
Elsewhere, Roach said the US$1.35mln loan to MNH, the owner and operator of the Otjozondu Manganese Mining Project, is a prelude to closer co-operation between the companies.
“MNH is profitable now. Repayment of the loan could potentially fund Premier's Zimbabwean operations just as this is needed,” he added.