One of Zimbabwe's largest goldmines is to reopen. Mwana Africa, the London-listed miner, said that it would invest $6 million (£4.1 million) to restart operations at the Freda Rebecca mine after the power-sharing deal struck between President Mugabe and Morgan Tsvangirai, the Prime Minister, five weeks ago.
Freda Rebecca was producing 98,000 ounces of gold, worth $90 million a year at present prices, before economic and political instability forced it to close. Mwana found it impossible to retain skilled workers and imported equipment would often fail to reach the mine, 55 miles (90kms) north of Harare.
Under the Mugabe regime, goldminers were forced to sell all their production to the Reserve Bank of Zimbabwe. Allegedly payments would go missing or were so delayed that the country's rampant inflation made them worthless.
The deal between Mr Mugabe and Mr Tsvangirai has involved the adoption of the US dollar as a de facto national currency, giving companies the reassurance that revenues earned in Zimbabwean dollars will not immediately become worthless.
Businessmen in Zimbabwe also report that the power-sharing Government of Mr Mugabe's Zanu-PF and Mr Tsvangirai's MDC has relieved some of the paralysis in decision-making.
Mwana hopes to overhaul Freda Rebecca and restart production in the next few months. Kalaa Mpinga, chief executive of Mwana Africa, said: "We are pleased that the improved business environment in Zimbabwe allows us to implement a programme to restart production at a time when the gold price is strong. Freda Rebecca has a long history and we plan to restore that tradition and get the mine back into production as soon as possible."
A number of British companies have retained a presence in Zimbabwe, including Rio Tinto, Anglo American, British American Tobacco, SABMiller and Barclays.
This article was originally published in The Times on March 26, 2009