RioZim reserves US$20m for Cam and Motor

07 Feb, 2016 - 00:02 0 Views
RioZim reserves US$20m  for Cam and Motor

The Sunday Mail

Africa Moyo
RioZim Limited is set to plough US$20 million into Cam and Motor to bring the mine back into full production and spur catapult output to 100kg of gold per month in the near future.
Cam and Motor Mine in Eiffel Flats, Kadoma, resumed operations in April 2015 after shutting down in 1968 and currently churns out 55kg of gold monthly.
When the mine ceased operations about 50 years ago, it had produced 150 tonnes of gold.
RioZim told The Sunday Mail Business last week that “work has already started” to ramp up production.
“The open pit mine is expected to be fully operational towards the end of 2016. Gold, like other minerals, is hard to mine and process. The investment required is substantial and there are huge technical challenges. “RioZim will have invested about US$20 million when the project is fully operational,” said the company.
The money will come from shareholders and internal accruals and on commissioning, more than 400 new jobs will be created.
There are, however, concerns over a proposed hike in electricity tariffs.
The Zimbabwe Electricity Trasmission and Distribution Company, a unit of Zesa, has applied to increase tariffs from the current USc9,86 per kilowatt hour to USc14 per kWh.
RioZim says it will continue to engage Government for “competitive cost of power” especially as metal prices fall on international markets.
Most gold miners are already buying electricity at USc13 per kWh, a tariff that was negotiated when the gold price was US$1 700 per ounce.
“(The) proposed 49 percent hike in power tariff will contribute to high operating costs. The current tariff is already too high,” said Rio Zim.
Gold producers are also pushing for expeditious issuance of new Exploration Prospecting Orders and reduction of licences fees, royalties, and special grant renewals turnaround times, including the reduction of duty rebate threshold for capital imports.
The yellow metal continues to be relatively attractive to investors who want to hedge their investments.
RioZim, which employs over 3 000 people, is listed on the Zimbabwe Stock Exchange and has been operating in Zimbabwe for 60 years.
Its major operations are Renco Mine (gold) in Nyajena communal lands, Empress Nickel Refinery (copper and nickel) in Kadoma and Sengwa (coal) in Gokwe North. It is also an investor in Murowa Diamonds.
Early last year, Rio Tinto Plc sold its 70 percent stake in Murowa Diamonds, and another 50 percent in Sengwa Coal, to divest from Zimbabwe’s mining sector, leaving GEM RioZim Investments as majority shareholders.

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