ZMDC entity eyes 25kg gold output
Zimbabwe Mining Development Corporation (ZMDC)-owned gold producer, Sabi Gold Mine, resumed operations a month ago amid expectations of producing 25kg of gold this month, a government minister has said.
BY FIDELITY MHLANGA
Mines and Mining Development deputy minister Fred Moyo yesterday told NewsDay that the mine has reopened its doors and has set a target of producing 25kg of gold this month.
“It (Sabi mine) has been a month now since they opened and they indicated they will produce 25kg of gold this month.
I don’t know whether they will be able to achieve that,” Moyo said.
Sabi ceased operations in 2011 due to shortage of working capital and has been under judicial management since 2014.
The mine got a new lease of life after government injected $7 million worth of equipment with a consortium of local investors injecting $6 million.
Baldwin Holdings, a South African company recently completed the refurbishment of the mine.
The mine has been susceptible to vandalism by artisanal miners who invaded the mine destroying key infrastructure.
Sabi Gold Mine, is the third largest mine in Zvishavane after Mimosa, Shabanie and Murowa Diamonds Mines, used to produce about 50 kilogrammes of gold per month with a total workforce of 420.
Gold is one of the country’s largest foreign currency earners.
Zimbabwe’s gold deliveries to Fidelity Printers and Refiners (Fidelity) went up almost 16% to close 2016 at 21,4 tonnes, earning the country $914 million.
The country expects an overall annual gold output of 28 tonnes with the recently mooted command mining envisioning
32 tonnes by year end.
Gold demand in 2017 is expected to be driven by trends in the global economy including heightened political and geopolitical risks, currency depreciation, rising inflation expectations, inflated stock market valuations,
long-term Asian growth and opening of new markets, according to the World Gold Council 2017 outlook.