Resources group RioZim has placed orders with a Chinese firm for the manufacture of a plant with capacity of processing up to 2 500 tonnes of ore per day, as it moves to revive Cam and Motor Mine.
BUSINESS REPORTER
The group recently raised $10 million to re-open Cam and Motor Mine, which was closed in 1968.
In a statement accompanying the group’s interim results, RioZim board chairman, Lovemore Chihota said the successful capital raising exercise has secured the future of the project, which “can now be implemented to completion”.
“Plant commissioning is scheduled for early 2016 and the project is expected to produce at least 120kg per month,” he said.
Before its closure in 1968, Cam and Motor had historically been the largest gold producer in the country, having produced 5 291 100 ounces of gold.
In January, RioZim said geological and metallurgic tests revealed that with the current technology and at the current grades of ore, Cam and Motor “is capable of producing significant amounts of gold at a competitive cost of production”.
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In the six months ended June 30, RioZim’s revenue was 41% lower than the comparable period last year, where revenue stod at $23,1 million.
RioZim said its performance was weighed down by Empress Nickel Refinery, which had not received matte from its sole supplier.
Chihota said the supplier was facing constraints, but “committed to resuming supplies in the first quarter of 2016”.
He said the company had also engaged alternative local matte suppliers and “once negotiations are concluded, it is anticipated that these suppliers could start supplies beginning the first quarter of 2016”.
“The refinery remains in a sound technical state and is ready to resume production as soon as matte supplies become available,” Chihota said.
Gold output at Renco Mine was up 24% to 366kg aided by an improvement in grades and increase in ore generation.
RioZim’s share of loss in Murowa Diamonds was 573 000 from a profit of $414 000 registered in the same period last year.
RioZim has a 22% shareholding in Murowa. Chihota said there was no significant mining that was done at Murowa in the first half of the year adding that losses at Murowa will continue into 2016.
