Changing scenarios in Zimbabwe did not prevent so called companies from sidelining it as TWP Investments has pulled out of a gold plant project citing the country as too risky.
TWP Investments in association with African Consolidated Resources (ACR) is to build a gold plant in Zimbabwe under an agreement reached November last year.
However, in a statement, TWP said following the review of the country's investment climate it was no longer in a position to continue with the deal.
The company is no longer prepared to risk the substantial capital investment in building the plant for ACR's sulphide dump recovery, following a review of the TWP group's policy on country risk in Zimbabwe, the company said.
TWP was supposed to build a gold plant at the Zimbabwe-focused ACR´s Pickstone mine. ACR had planned to commit US$500 000 towards the construction of the plant, which was expected to have been commissioned this month.
Following the decision by TWP to pull out of the deal, ACR said it was in the process of considering other options to fund the project.
TWP Projects has indicated a willingness to guarantee the same extraction percentages and production levels as previously agreed by ACR with TWPI if a new construction contract is entered into, said ACR in response to the latest developments.