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RioZim chairman Mr Elisha Mushayakarara (centre), chief executive Mr Ashton Ndlovu (right) and chief finance officer Mr Bheki Nkomo share a lighter moment during the mining company’s AGM yesterday

Business Reporter—- 
Former RioZim chief executive Mr Ashton Ndlovu was forced to resign because shareholders were not happy with his performance, a source close to the matter said.  “Some major shareholders, particularly GEM (Raintree Investments) and Old Mutual were not happy with his performance especially at Renco Mine,” said the source. RioZim announced last week that Mr Ndlovu stepped down as the group’s chief executive “to pursue personal business interests”. He joined the company in April 2012.

In its financial results for six months to June this year, RioZim said lower production at Empress Nickel Refinery and Renco resulted in the group’s turnover declining by 31 percent to $39,9 million from $56,8 million recorded in the same period last year.

“As a result, for the first time since the implementation of the group’s turnaround in April 2012, the group made an operating loss of $4,6 million (2013: operating profit of $2,2 million),” chairman Mr Elisha Mushayakarara said on August 25 this year.

Meanwhile, RioZim intends to raise about $10 million through a rights issue to revive Cam and Motor Gold Mine in Kadoma.
“The funds derived from the rights offer will be specifically earmarked to pay for capital expenditure and working capital costs required for the reopening of the Cam & Motor Mine. This is one of the key projects that are expected to put the group’s turnaround strategy back on track,” according to a draft document prepared by the company.

RioZim is proposing GEM Raintreee Investment, the largest shareholder to be the underwriter, a development that could result in the firm raising its stake from 25 percent.
Two weeks ago, the diversified resource company published a cautionary statement advising shareholders that “negotiations for the rights issue are still in progress” adding that the finer details of the proposed rights issue will be provided in due course.

Cam and Motor is wholly owned by RioZim and it used to be the largest producer of gold in Zimbabwe before it was closed in 1968. Prior to it being shut, an estimated 5,3 million ounces of gold was produced, putting it in the status of a World Class Gold Mine. The cut-off grade at that time was approximately 8 grammes per tonne.

RioZim intends to re-open Cam and Motor using open cast mining for the first five years to a depth of 100 metres followed by underground mining starting with the Motor Lode ore body because it has a higher value deposit and less people would require resettlement.

RioZim said geological exploration in the form of evaluation drilling has delineated a gold resource totalling approximately 6,4 million tonnes of ore at an average grade of 4,8 gramme per tonne which equates to approximately 893 330 ounces of gold.

From year two, mineral processing will include flotation, roasting of the sulphide concentrate and cyanide leaching of the roasted concentrate.
To reduce costs of reviving the mine, RioZim said it will use contract mining companies to drill, blast and haul the ore to the plant and the waste rock to the waste dump. In May this year, the diversified resource firm floated a mining contract tender for the Cam and Motor project.