Groves is preparing to relist the pair's Zimbabwe coal, chrome and gold assets in London through the reverse takeover of a cash shell, or dormant company. He sees the ascent to the presidency of Emmerson Mnangagwa, a man who served more than half a century at the side of Mugabe, as beneficial.
“I’d like to build it into a mid-tier mining company,” Groves said, adding that he has a lot of local contacts. “I’ve known Emmerson - the new president Emmerson Mnangagwa - for 15 years. He’s made a huge change already.”
Mnangagwa, Zimbabwe’s former spy chief, became president in November with military backing and has offered to hold elections by July. His administration abolished rules that mining operations must be at least 51percent owned by black Zimbabweans for all minerals other than platinum and diamonds.
Zimbabwe is geologically rich, with deposits of gold, chrome, lithium, coal, diamonds, platinum and iron ore. Mine development stalled under Mugabe, whose policies led to a collapse in the economy and hyperinflation. “Everything has changed in the country,” said Groves, who won’t hold an executive position in the new company. “There’s a huge amount of euphoria.”
Groves and Edmonds delisted their Sable Mining venture, which was trying to build an iron-ore mine in Guinea, less than two years ago. That followed a slump in prices of the commodity and bribery allegations that were denied by the company.
Now renamed Consolidated Growth Holdings, the private company that holds Zimbabwe and Guinea assets is in talks with London-listed Contango Holdings for a reverse takeover.
Past deals by Groves and Edmonds include the sale of Central African Mining & Exploration for about £584m in 2009 after securing copper and cobalt mines in the Congo with the help of Dan Gertler.