The Sunday Mail
Resuscitation of Sabi Gold Mine has suffered a setback after a local firm that had committed to pout US$26,1 million into the project, Chandiwana Mines (Private) Limited, suspended support for unclear reasons.
But parties to the deal are optimistic the project will proceed.
Sabi Gold Mine, owned by the Zimbabwe Mining Development Corporation, has been under judicial management since 2014 after shutting down operations in 2011 due to working capital shortages.Chandiwana Mines – a consortium of 5 000 Zimbabwean mining experts based in the Diaspora and locally – has already disbursed an undisclosed sum that has been used to buy mining equipment.
Sabi judicial manager Mr Wesley Sibanda of Welsa International Chartered Accountants confirmed to The Sunday Mail Business that the investor had suspended financial support.
“What is happening so far is that there is some issue that came which we are trying to sort out with the shareholder.
“That is the issue that has caused the inflows to stop a little bit but we hope to finish it soon,” said Mr Sibanda without elaborating.
Plant refurbishment at Sabi is almost 80 percent complete. More than 50 employees have already been engaged, with more expected to be recruited once activity improves.
“We have already started renovating the plant; I think the plant is almost 80 percent complete now. So we are waiting that once the plant (refurbishment) is complete we go underground.
“We have got employees that we have targeted to start working with. We already have them so that when we are ready to begin the run of the mine, they will do that and then we start further recruitment because (with) the mining process, we cannot bring everybody at the same time.
“We have to first set the machinery and see if it is working, once the machinery is working, then we now invite certain key employees that we need. Those that are working on the ground currently are about 50,” said Mr Sibanda.
Most of Sabi’s equipment – a AVM 10-tonne lorry, 75-seater buses, plant machinery and malfunctioning heavy vehicles and machinery – was attached by the deputy sheriff over liabilities estimated at over US$27 million.
Sabi’s claims were first pegged in the 1890s and production started in 1909. It was acquired by ZMDC in 1984.
ZMDC owns 100 percent of Kimberworth Investments (Pvt) Limited, which trades as Sabi Gold Mine.At its peak, the mine had about 450 employees and used to significantly contribute, not only to the Zvishavane economy, but also to the national economy.
The mine has a capacity to treat 450 tonnes of ore per day. ZMDC also wholly owns mines like Jena Gold Mines in Silobela, and Elvington Gold Mine in Chegutu. Elvington suspended operations in 2003 due to the collapse of one of its main shafts.
ZMDC is exploring ways to revive its other gold mines.
Between August 2011 and September 2012, ZMDC paid about US$400 million in dividends to Government.
The gold mining sector targets to produce more than 24 tonnes of the metal this year. Five tonnes have been delivered in the first three months of 2016.
Last year, the country produced 18,3 tonnes of gold, generating more than US$685 million.
