The PEPDA (which is already signed) has everything IVZ requires at this stage to proceed with its operations.
ie; IVZ is not stuck in a halt waiting for the government for anything - its full steam ahead.
The PSA is a 2 part (PEPDA is the first part), and the PSA is the second part - it will be signed, must be signed - and IMO its not possible that it wont be signed (for obvious reasons).
A little info about the PSA:Production sharing agreements (PSAs) or production sharing contracts (PSCs) are a common type of contract signed between a government and a resource extraction company (or group of companies) concerning how much of the resource (usually oil) extracted from the country each will receive.
Production sharing agreements can be beneficial to governments of countries that lack the expertise and/or capital to develop their resources and wish to attract foreign companies to do so.
This is exactly whats happening here, IVZ is funding the extraction of Gas/Oil in Zimbabwe, because Zimbabwe lacks the expertise/capital and so on.
Whats in it for Zimbabwe? Well, Zimbabwe might say, OK - you have found 8TCF of Gas, excellent! That works out to be XXX$$$ worth. Lets do 60/40. So the government will get their share without doing any work. And IVZ will benefit in the sense of profiting from something that wasn't theres to begin with (foreign land). Its a win/win for both - millions of dollars will pour in to all parties involved. The PSA will often have terms such as delayed profit sharing (ie; the Zimbabwe government wont get any profits from the sale of Gas until IVZ has recovered its initial costs that it spent to get the resource).
The PEPDA (already signed) covered the legal framework and the tax rate on profits and many other things. But the PSA (product sharing agreement) is a different agreement that will be signed. The government is not stupid, the whole point of this is profit and making money for all parties involved.
Maybe the government wants to wait until a resource is found before signing a PSA.
Maybe the government is in no rush to sign the PSA because no resource has been found yet so the PSA is not even required yet.
Maybe the government thinks IVZ already has all it needs legally (PEPDA) for the meantime until a resource is actually found.
This link here explains the PSA in more detail, and in a very easy to understand way (highly recommend checking it out, especially the last paragraph):
https://www.opuskinetic.com/2019/04/advantages-of-production-sharing-contracts/The PSA is a very complex document and is very important for both parties as it will govern the terms for the lifetime of the project.
You think the government will scam IVZ?I dont think so. I think thats a very stupid thought to have.
I have mentioned in the past that as of right now, there are multiple projects advancing in Zimbabwe (Zimbabwe is open for business for the first time in history). You have both public listed companies and private listed companies currently advancing in their projects.
Public listed companies with projects in Zimbabwe:PSC Lithium
IVZ Gas
Both IVZ and PSC have received Special Economic Zone (SEZ) status from the Zimbabwean government, which includes tax relief and exemptions, and reductions of costs and trade barriers associated with the import of raw materials and capital goods.From what i've read on PSC (could be outdated info) - they need to pay a 2% royalty on all sales to the government, 5% marketing fee to the Minerals Marketing Corporation Zimbabwe + taxes. As part of the SEZ Status (special economic zone), PSC stands to benefit from corporate tax exemptions for the first five years (which grants 0% tax rate for the first five years) - (15% thereafter).
I believe Oil/Gas agreements are different to other types of resources though.
Private companies with projects in Zimbabwe (or grants to explore):AUSTRALIAN company African Continental Minerals (ACM) is set to sign a 20-year joint venture with the Zimbabwean government to exploit coal bed methane in the country.
https://www.newsday.co.zw/2021/06/aussie-firm-seals-20-year-deal-to-develop-zim-gas-fields/Zimbabwe has granted coal bed methane (CBM) special grants to six investors in Matabeleland North province as it seeks to tap into cleaner fuel for electricity generation, a move which has been cheered by climate advocates who view the development critical in efforts to curb climate change.
Among the companies that have been granted CMB concessions are Tumagole of South Africa, Sakunda Holdings and Shangani Energy Exploration (SEE),
which is owned by Chinese steel giant, Sinosteel.Zimbabwe launched a roadmap that seek to propel the mining sector to a US$12 billion industry by 2023 described by some critics as ambitious and too unrealistic.
As you can see Zimbabwe is desperate for commercial success and will not sabotage or ruin their credibility among foreign investors. One bad move by Zimbabwe will see all foreign investments pulled from the country if there becomes trust issues and theft/scam. I think people should see surrounding countries PSA agreements, the average/mean - and predict IVZ to get a similar deal. Its not rocket science
