The US is taking issue with the economic dealings between Russia and Zimbabwe following a $3 billion platinum development deal. 

A newly formed consortium of Russian mining concerns will invest in the second-largest platinum deposits in the world in Zimbabwe, and the US is taking issue with the economic dealings between the countries.

A Russian consortium signed a deal with the Zimbabwean Government in August to mine the world’s second largest platinum deposits at the Darwendale resource.

Darwendale platinum project

Zimbabwe’s Pen East Investments has teamed up with Afronet, a consortium of three Russian partners, to form Great Dyke Investments, which is developing the US$3 billion Darwendale platinum project.

At full development in 2024, the mine will produce 800 000 oz of platinum, pushing Zimbabwe’s output over one million ounces, and create 8 000 jobs.

Zimbabwe and Russia sanctions

According to Herald columnist Nathaniel Manheru, who is thought to be President Robert Mugabe’s spokesman George Charamba, the Obama administration threatened further sanctions against Zimbabwe over its ties with Russia.

The US has placed sanctions on Russia over the Ukraine crisis in Eastern Europe, where Russia has allegedly sparked a civil war and destabilised the region, according to reports.

Further sanctions

Russian foreign minister Sergey Lavrov visited Zimbabwe last month to conclude the $3 billion platinum deal with President Robert Mugabe.

However, according to a NewZimbabwe report, the deal could see Washington hit Harare with further sanctions.

The US imposed sanctions against Zimbabwe in 2003, accusing Mugabe of human rights abuses and electoral fraud.
Harare denies the allegations, insisting the sanctions were meant to punish the country for embarking on its land reforms.

Zimbabwe economy

Obama’s administration has ignored calls by Mugabe to remove the sanctions which the veteran leader blames for bringing Zimbabwe’s economy to its knees.

The Zanu PF government says Western countries have been perplexed by Harare’s growing economic ties with China and Russia.

Zanu PF chairman, Simon Khaya Moyo, last week said support from Beijing and Moscow had helped crush the West’s attempts to force regime change in Zimbabwe.

“We understand their (West) fear when China and Russia are pouring in billions of dollars to partner with Zimbabwe in infrastructure, mining and beneficiation of minerals within Zimbabwe,” Moyo said during a visit to Cuba.

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