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Elvington require capital injection – Nengomasha

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ZIMBABWE Mining Development Corporation’s (ZMDC) subsidiary Elvington Gold Mine says its revival has been in limbo

ZIMBABWE Mining Development Corporation’s (ZMDC) subsidiary Elvington Gold Mine says its revival has been in limbo after failing to attract strategic investors to resuscitate operations.

VICTORIA MTOMBA BUSINESS REPORTER

The gold producer requires $4,1 million to resuscitate its operations and start the heap leach project.

Speaking at a briefing to the parliamentary portfolio committee on Mines and Energy Elvington mine manager, John Nengomasha said the company required money to revive its operations and pay salaries for its workers who have gone for eight months without pay.

“We need $1,2 million for exploration and evaluation. Evaluation determines viability and justification for refurbishment of the main processing plant,” Nengomasha said.

He said the company estimates that its current heap leachable material to be at 351 882 tonnes and it requires $2,9million.

Nengomasha said the money would be used for purchasing earth moving machinery, equipment and the geo-membrane.

Elvington is among mines owned by government through ZMDC.

During the tenure of the inclusive government, the ministry of Mines and Mining Development held talks with various investors who had shown interest in the gold mine.

“The issue of investors coming to the mine has been sort of a see-saw, but now we are waiting for government to send to us investors who would have been shortlisted,” Nengomasha said.

Nengomasha said during the first half of the year, the mine treated 14 558 tonnes of sand and produced 7kg of gold.

He said the company was currently doing sand treatment to produce the gold.

He said the company realised $686 123 during the first half of the year.

“The mine completed the installation of three mechanical agitators while four were still outstanding. Plant upgrades will continue in stages using resources from production. Negotiated credit lines for the supply of activated carbon and reagents to commission the plant [will be sought],” Nengomasha said.

Nengomasha said the company employed 127 people down from the 650 that it had before the mine collapsed in 2003.

Nengomasha said the company had a mining claims dispute with some retrenches who occupied some of its property and the issue is still before the high court.

In 2012 government was looking for $35 million to resuscitate Elvington, Sabi and Jena mines.