FREDA Rebecca Gold Mine — one of Zimbabwe’s oldest gold operations — has tripled exploration expenditure to nearly US$8 million as it seeks to extend the mine’s lifespan to at least 10 years.
The Mutapa Investment Fund-controlled miner currently has an estimated mine life of four years, a level management says falls below industry expectations for a long-term operation.
The investment comes as Zimbabwe’s mining sector faces mounting pressure to replenish depleting reserves, improve operational efficiency and secure sustainability in an industry that remains one of the country’s biggest foreign currency earners.
Freda Rebecca general manager Alfred Chinyere told the businessdigest that the company had launched a 46 000-metre drilling programme aimed at boosting reserves and extending operations.
“We have a life of mine of four years,” Chinyere said.
“That is low when you look at industry standards. You want that life of mine to be a minimum of 10 years.
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“What you already have — those four years — has existed for many years because you deplete and add at the same time. So, you want a higher rate of addition against depletion, which is exactly what we are doing now.
“This year alone, we are going to drill 46 000 metres of exploration drilling, and that will be converted into life of mine. We are looking at nothing less than nine years.”
Chinyere said exploration spending had risen sharply from about US$3 million in the previous financial year to nearly US$8 million.
“That will solve that problem for good by the end of this year. We are looking at close to US$8 million in investment. In the previous financial year, we invested around US$3 million. This year, we have tripled that,” he said.
Zimbabwe, which is targeting a US$12 billion mining industry, has increasingly pushed mining companies to intensify exploration amid concerns over reserve depletion at several mature operations.
Gold remains the country’s single largest mineral export earner, with output driven by both large-scale producers and small-scale miners. However, the sector continues to battle high power costs, foreign currency shortages and ageing infrastructure.
Chinyere said Freda Rebecca was also expanding the use of artificial intelligence technologies in underground operations to improve geotechnical monitoring and mine safety.
“We are already using AI in our operations, although not at the scale seen elsewhere where autonomous vehicles are deployed widely,” he said.
“We are using AI for geotechnical management. Rock behaviour needs close monitoring. That is why we have developed AI systems. We have drones flying underground to map operations, and we use AI to simulate possible scenarios, including worst-case outcomes, before putting management measures in place.”
He said the technology remained at an early stage locally, but the company intended to scale up deployment over time.
“It’s an area where we definitely need to upscale,” Chinyere said.
The mine is also reassessing plans for a solar energy project after delays in finalising an off-take agreement with a potential partner.
“There is an off-take agreement that has been crafted, but the challenge we face is the slow pace, which we do not like,” Chinyere said.
“We have decided to explore other alternatives because the identified player is not moving at the speed we require. Looking at our cash flows, we can afford to internally finance the project, and that is now one of the options under consideration.”
He said a final decision on the financing structure was expected within a month.