Thursday, March 26, 2009

Africa jumps on Zimbabwe restart

Shares in Mwana Africa Plc jump 10.4 percent after the miner says it
plans to restart gold production at its Freda Rebecca mine in Zimbabwe.
Mwana says the restart of mine is made possible by higher gold prices and
after the new coalition government allowed gold producers sell gold on the open
market and to hold foreign currency.
'There remains considerable political risk for mines in Zimbabwe which have
largely closed down due to the current difficult political environment,' Fairfax
says in a note.
'However, the new procedures laid out by RBZ (central bank), the recent
political progress and the official acceptance of rand and US dollar as
acceptable currencies within the country gives hope that the resources industry
within the country can begin to recover.'
To see Mwana Africa's statement please click on
Reuters messaging rm://

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