eBusiness Weekly
Africa Moyo
Metallon Corporation, the country’s biggest gold miner, plans set to shell out $530 million in the modernisation and re-engineering of its four mines as it seeks to ramp up production riding on the hospitable operating environment created by President Mnangagwa’s administration.
The company wants to remodel operations at How Mine; Mazowe Mine; Shamva Mine and Redwing Mine in Mutare.
Metallon says the massive investment, which will be accompanied by labour rationalisation to boost revenues, has been necessitated by the dramatically changed operating environment since November 24 last year.
Bulawayo Mining Company (Private) Limited (BMC), the owner and operator of How Mine, wants to modernise and re-engineer its operations given its “strong position” to invest.
The How Mine upgrades will gobble $120 million.
Bankable feasibility studies are underway.
Said BMC yesterday: Due to recent political changes and renewed confidence in Zimbabwe, BMC is now in a strong position to invest in its gold mining operations.
“BMC has a JORC-compliant resource of one million ounces of gold and there is potential to develop the mine into a greater volume operation.”
BMC says the modernisation programme is designed to enable How Mine to introduce mechanisation and start bulk mining and mining at surface.
The modernisation activities will result in massive reduction in costs.
Currently, BMC is deepening shafts to allow mining at depth.
Hoisting capacity is to be increased to 75 000 tonnes per month while the current processing plant will also be upgraded to match the new hoisting capacity by 2020.
Further, a 100 000 tonnes per month sands processing plant will be constructed in 2020 to process surface ore.
Alongside the upgrades, a comprehensive underground and surface exploration drilling program will be carried out.
New tailings storage facilities and infrastructure upgrades will also be required.
On completion, annual production capacity will rise to 100 000 ounces.
Mazowe Mine upgrade
Gold Fields of Mazowe (Private) Limited (GFM), the parent company of Mazowe Mine, is also being modernised and re-engineered at a cost of $110 million.
Staff will also be rationalised.
On completion, annual production will rise to 93 000 ounces. Bankable feasibility studies are currently underway.
GFM has a JORC-compliant resource of 1,8 million ounces of gold and there is the potential to develop the mine into a greater volume operation.
Mazowe Mine acting managing director Joseph Chifamba will run the modernisation exercise with other experienced staffers.
Underground mining will be suspended and accelerated development will be carried out while production takes place from the newly commissioned 60 000 tonnes per month sands plant.
Next year, a crushing circuit will be installed to convert the sands plant to process hard ore.
Underground mining will resume in 2020, ramping up capacity to 65 000 tonnes per month in the following year.
Shamva Mine refurbishment
Gold Fields of Shamva (Private) Limited (GFS), which owns and operates Shamva Mine, also wants modernise and re-engineer its operations. Similarly, labour will be rationalised.
GFS has a JORC-compliant resource of 2,5 million ounces of gold and owners see potential to develop the mine into a greater volume operation.
The programme will be run by acting managing director, Thomas Lusiyano, together with other senior managers.
Underground mining will also be suspended while redesign and development of underground operations takes place.
Production will commence from mining at surface with current processing operations.
Two new flotation-based processing plants will be constructed. The first 150 000 tonne per month plant will be built by 2020 and process ore from near-surface.
The second 100 000 tonne per month plant will be commissioned in 2022 and will be supplied from underground ore after the sinking of a new shaft.
New Tailings Storage Facilities and infrastructure upgrades will also be required.
Modernisation of Redwing
The King’s Daughter Mining Company (Private) Limited (‘KDMC’), the owner and operator of Redwing Mine, also wants to modernise and re-engineer its operations.
The project will cost $150 million.
Bankable feasibility studies are underway.
KDMC has a JORC-compliant resource of 2,6 million ounces of gold.
Managing director Kimbton Chiota, will spearhead the programme.
A 200 000 tonnes per month plant will be constructed for commissioning in Q1 of 2020.
The mine will be de-watered further and a new shaft constructed to bring hoisting capacity to 200 000 tonnes per month and expose resources below water.
New tailings storage facility and infrastructure upgrades will be required.
On completion, annual production will rise to 200 000 ounces.
