The southern mining town of Rosh Pinah is facing serious investment challenges, as investors seem to have lost trust in the economic viability of the area post mine closure.
Rosh Pinah Zinc Vice President of Operations Sheron Kaviua says the town needs to aggressively market the areas of investment to potential investors, hinting at tourism and agriculture as possible alternatives.
Kaviua made these remarks during the recently held Chamber of Mines Expo, regarding the closure and rehabilitation of mining sites, and what plans and innovative interventions are in place to ensure the long-term environmental and socioeconomic sustainability of mining areas after operations conclude.
She said the tourism and agricultural sectors have the potential to grow and expand, even post-mine closure, and can keep the town economically active. However, she said there is a need for the private sector to initiate in-depth studies to test the feasibility of these identified opportunities.
Kaviua also called for a fast-tracked local administration with a drive to encourage the private sector to initiate in-depth studies by freely sharing information, assisting in land procurement, and offering financial incentives.
She recommended that the financial incentives could include leasing or selling land portions identified for special projects at a subsidised rate, with a revert clause that would revoke ownership of the land and return it to the local administration if it is not used for the intended purpose.
Kaviua also said exemption from rates and taxes payment for a defined period of time could also attract and assist start-up enterprises to become financially secure.
She further suggested that providing municipal services at competitive rates, as well as making land available for housing to employees of mines and other institutions, would also serve as an investment incentive.
Kaviua emphasised that a successful local economic development needs to be broad-based and target-oriented, and supported by defined programmes, policies, and incentives. She said each urban area has its own unique opportunities, challenges, and development priorities which need to be identified and actively promoted.
“This requires time and dedicated interventions from the local authority and the Government,” she said. “As such, seed money in the form of public spending dedicated to the development of sound institutional services, access to serviced land, tax incentives for start-up enterprises, and a well-constituted and functional local authority administration is required.”
In terms of agriculture, Kaviua highlighted the arable land located on unsurveyed stateland between Sendelingsdrift and the Rosh Pinah Townlands. She said this land could be made available for farming practices, such as growing high-value crops, fodder production, and dairy farming.
Mining-focused investment adviser Appian Capital Advisory in June completed the acquisition of a controlling 89.96% stake in the Rosh Pinah zinc/lead mine from Trevali Mining for an undisclosed amount.
Rosh Pinah currently operates as an underground zinc/lead mine with a milling operation capable of processing 2,000 tonnes per day.
With controlling ownership now in Appian’s hands, the company intends to leverage its technical and operational capabilities to restart the Rosh Pinah 2.0 mine expansion project.
This initiative aims to increase the mill’s ore throughput from 700,000 tonnes per year to 1.3 million tonnes per year, consequently raising zinc-equivalent production to an average of 170 million pounds annually.
