Tuesday, June 3, 2014

Private Sector Demand for Improved Road Infrastructure in Zimbabwe to Benefit Raptor Resources Holdings Inc. (RRHI)

Freehold, New Jersey based Raptor Resources Holdings saw its revenue potential jump after a local mine, Derbyshire Stone Quarry, was acquired earlier this year through its Zimbabwean affiliate, TAG Minerals Zimbabwe (Private) Ltd. Raptor Resources can be expected to benefit from an increase in road construction activity this year as Derbyshire Stone Quarry is the largest indigenous sand and stone quarry in the Harare area, the capital of Zimbabwe, and is located in a prime residential growth zone within close proximity to major road projects.

Zimbabwe continues to be a very rich source of mineral wealth as the world’s second largest source of platinum, as well as having huge resources of diamond, gold, coal, nickel, and iron ore. Agriculture has also been a huge source of economic growth, driven in great part by the tobacco industry. South African grocery retail chains have been investing in Zimbabwe as well as Chinese construction firms working on power plant infrastructure. Essentially, the private sector has begun to fund road construction in Zimbabwe to gain access to resources.

Just recently, Zimbabwe’s telecommunication giant, Econet Wireless, announced it will diversify into the road construction business. Econet’s CEO Douglas Mboweni says the latest expansion drive was reached after noting that many communities were hard to reach because of poor roads. Zimbabwe has a 7,200 kilometer fiber optic network which is unable to reach outlying areas due to a poor road network. Obviously, as private sector investment in the road infrastructure picks up in Zimbabwe, this will strongly benefit those natural resource companies that supply the raw materials for road construction.

Derbyshire Quarry is an open pit mine that provides various granite based products which are used as aggregates in asphalt or cement. Key products include decomposed granite, crusher run, quarry dust, pit sand, washed river sand, 10mm stone, and 20mm stone. Essentially at the mining operation, stone that is dug from a pit is placed on conveyer belts and led to a variety of rock crushers. Typical varieties of rock crushers include roller crushers, which have two large metal rollers spinning in opposite directions that basically just crush the stones down to size, impact crushers which have a spinning rotor with heavy metal blades which effectively smash stone into smaller pieces as it is thrown into a plating, and jaw crushers, which basically consist of a heavy metal jaw that exerts force on rock as it is pressed against a stationary plate. After the stone has been reduced in size it passes through various screens to insure uniformity in size for a specific product.

Derbyshire Stone Quarry is focusing mainly on private sector corporate clients expected to spend on road construction over the next 12 to 18 months and as a result will continue to capitalize from Zimbabwe’s growing demand for quarry stone.

For more information, visit www.raptorresourcesholdings.com

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