The Sunday News
Dumisani Nsingo, Senior Business Reporter
SABI Gold Mine which resumed operations last month after more than five years in the cold has set sights on producing an average of 20 kilogrammes of gold a month.
The Zvishavane-based gold mine has been under judicial management since 2014 after stopping operations in 2011 due to working capital constraints.
Its operations took a knock when most of its machinery was attached by the Deputy Sheriff over liabilities of more than $27 million against assets worth US$11,6 million, making the company technically insolvent.
Sabi Mine judiciary manager Dr Wesley Sibanda of Welsa International Chartered Accountants said production at the mine started late last month.
“We had initially made arrangements to start production on 17 January but we couldn’t do that because normally when a mine resumes such operations there is a need for approval by a mining inspector.
“We therefore invited the provincial mining inspector who approved virtually all operations but condemned our hoist rope, for pulling out ore from the shaft but rectified that and as I speak we have started removing ore,” said Dr Sibanda.
About $5 million was channelled towards refurbishment and purchase of machinery so as to resume operations.
He said the company was looking forward to producing 20 kilogrammes from its initial production.
“We are looking at getting about 20 kilogramnes from the ore at our disposal and an average of 20 to 30 kilogrammes a month,” said Dr Sibanda.
The revival of the mine follows a joint venture agreement between Chandiwana Mines and the Zimbabwe Mining Development Corporation (ZMDC).
Chandiwana Mines is a consortium of 5 000 Zimbabwean mining experts based in the diaspora and locally, which agreed to plough US$26,1 million into the revival of Sabi Gold Mine, a key contributor to economic development.
ZMDC owns 100 percent of Kimberworth Investments (Pvt) Limited which trades as Sabi Gold Mine.
At its peak, Sabi Mine used to employ up to 450 people 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.
The mine’s claims were first pegged in the 1890s and production started in 1909. Sabi was acquired by ZMDC in 1984. ZMDC also wholly owns several mines including Jena Gold Mines which is based in Silobela, Midlands Province and Elvington Gold Mine based in Chegutu.
@DNsingo
