RioZim eyes higher gold production

KADOMA - Listed resources firm, RioZim, says it is targeting a 200 kilogrammes (kg) monthly gold production, following the commissioning of its Cam and Motor Plant and its recent acquisition of Dalny Mine Complex (Dalny).

The firm’s outgoing chief executive, Noah Matimba, on Wednesday said the newly-unveiled Cam and Motor Mine — which was mothballed in 1968 and bankrolled by a $10 million rights issue to come online — was expected to produce at least 100 kg of gold per month.

“Combined with output from Renco Mine, we are aiming to soon start producing north of 200 kg of gold a month.

“It has not been an easy journey just as we can relate to the adversities of this tough economic environment, what gives us pleasure is that we have been able to continue with a determined group of shareholders and investors,” Matimba said, on the side-line of the mine’s commissioning ceremony.

He pointed out that the new plant had an installed processing capacity of 2 500 tonnes of ore per day and was set to create 400 jobs.

Matimba also said the integrated mining company — with a diverse portfolio in gold, base metals, diamonds, coal and chrome — was well on its way to becoming one of Zimbabwe’s biggest gold producers.

The RioZim boss, however, admitted the company had seen its fair share of economic headwinds, adding despite this, gold production had trebled since 2012.

“Since 2012 RioZim has encountered untold turmoil and it’s no secret that the only association people wanted to have with RioZim was ‘when are you paying me,’

“It so happened that when I joined RioZim in 2014 it was a story of fighting banks, suppliers and so forth and I am pleased to say we have moved beyond that and this plant is that testimony of moving on. We can now probably say since 2012 we have trebled gold production,” said Matimba.

RioZim board chairman, Lovemore Chihota, said the acquisition of the Dalny — which was under care and maintenance since August 2013 —was anticipated to expand RioZim’s capacity.

The resources firm last month acquired Dalny and associated infrastructure after RioZim’s subsidiary, RioGold, acquired Dalny’s parent company, Palatial Gold Investments (Palatial Gold) in a move anticipated to rationalise Falgold’s asset base.

The acquisition of Palatial is in line with RioZim’s initiative to consolidate gold assets and output under RioGold through mergers and acquisitions in an effort to expand its gold division.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.