The Sunday Mail
Tinashe Makichi
The Zimbabwe Mining Development Corporation has secured funding for the recapitalisation of its gold producing unit, Jena Mine.
The Sunday Mail Business is informed that the State mining vehicle secured close to US$6 million from a local bank. ZMDC owns Jena and Elvington mines, as well as Sabi Mine, which is currently under judicial management. A well-placed source at ZMDC said the funding was secured and the recapitalisation of the mine is expected to start anytime from now.
“ZMDC secured US$6 million for Jena Mine recapitalisation recently and this funding is set to provide working capital and also boost the company’s prospects of revival,” said the source.
However, ZMDC chairman Mr David Murangari refused to comment. Jena Mine had been battling antiquated equipment and unreliable power supply due to non-payment of arrears.
Statistics from the Chamber of Mines of Zimbabwe show that the mine produced 309kg of gold in 2013. With a capacity to treat 450 tonnes of ore per day, Jena used to employ more than 632 staff at its peak. The mine had some of its property attached following its failure to pay creditors and the recent recapitalisation will go a long way in boosting production.
In all the gold mines under its potfolio, ZMDC is looking at introducing short, medium and long-term phases with the aim of improving efficiencies and ramp up production. Sabi Mine resumed full throttle production following a joint venture agreement between Chandiwana Mines and ZMDC. Chandiwana Mines is a consortium of 5 000 Zimbabwean mining experts based outside the country and locally, which agreed to inject close to US$26,1 million into the revival of Sabi Mine, a key contributor to economic development. The third mine, Elvington, suspended operations in 2003 due to the collapse of one of its main shafts and is currently under care and maintenance.
The mine is currently involved in dump retreatment while preparing for resuscitation of underground operations. Elvington used to produce 45kg of gold per month before the shaft incident. ZMDC believes the Chegutu gold producing unit, Elvington Mine, has potential to be profitable once funds are secured.
The mine has 21 blocs of mining claims stretching 437 hectares with potential monthly revenue of US$2,4 million if fully exploited.
ZMDC was established by an Act of Parliament No. 31 of 1982 and its main aim is to create a vibrant and versatile mining powerhouse necessary to transform Zimbabwe’s mineral wealth to world-class standards.
