ARM, Vale Mull $300m Zimbabwe Investment_AFRICAN Rainbow Minerals (ARM) and Brazilian resources giant Vale are planning investments in Zimbabwe worth US$300 million.

ARM business development director Dan Simelane was quoted as saying the company is particularly interested in Zimbabwe's vast platinum resources. Zimbabwe has the second-largest platinum deposits in the world after South Africa, and these deposits remain largely untapped.

"We are prepared to invest in Zimbabwe's mining sector and are willing to inject not less that US$300 million for mining activities as soon as a consensus with the Ministry (of Mines) is reached," said Simelane.

"Zimbabwe is the world's second-largest platinum producer after South Africa so it is a good move for both countries and the region," he added.

He said the company was also interested in Zimbabwe's vast coal resources, which are also largely untapped.

In the region, African Rainbow Minerals has operations in the Democratic Republic of the Congo, Namibia and Zambia.

ARM and Vale last month concluded the acquisition of minorities in formerly listed mineral development and exploration company TEAL Exploration & Mining.

The transaction, announced mid-December last year, created a 50:50 joint venture between ARM and Vale for the future development and operation of TEAL's assets.

At the time Vale said the joint venture enhanced its strategic growth options in the copper business in Africa.

"We expect this new joint venture to add significant value to our shareholders over the medium to long term, since it enhances our global copper growth platform and contributes to the diversification of our asset portfolio, providing simultaneously geographic diversification into a region with the highest potential for mineral exploration in the world, the African copperbelt," Vale said in a statement.

At 16:40 shares in ARM were trading 6.88% or 8.01 rand higher at 124.89 rand on the JSE.--mx