Premier African Minerals Ltd (LON:PREM) has hosted the Honourable Minister Dr. Sekai Nzenza of the Ministry of Industry and Commerce on behalf of the National Indigenisation and Economic Empowerment Fund (NIEEF), at its RHA tungsten project in the west of Zimbabwe.
Following the visit, the NIEEF requested until 11 March 2020 to evaluate the basis of NIEFF's ongoing involvement with RHA, following the submission by Premier of revised cost estimates.
Local costs in RTGS dollars (zimdollar) are increasing at a rate substantially greater than implied by the official rate at which the RTGS dollar exchanges against the US Dollar. NIEFF is expected to re-evaluate either providing additional funding for RHA in RTGS dollars to reflect these increased local costs, or to vary the terms of the RHA shareholder agreement to allow Premier to access alternative external funding.
“I am deeply appreciative for this visit and the frank discussions with the Honourable Minister,” said Premier African’s chief executive George Roach.
“The support we continue to receive from the Zimbabwean government confirms the importance of this project. Pursuant to the above request by the minister, we have agreed to place mobilisation and commissioning on hold pending their review."