Zimpapers Logo

Enacy Mapakame Business Reporter
LISTED mining concern, RioZim Limited has begun open-cast mining at its newly acquired Danly Mine in Chakari.Group acting chief executive Mr Bheki Nkomo said operations resumed in May following approvals by the Competition and Tariffs Commission in April for the group’s acquisition of the Danly complex and its claims.

“Although Danly has shafts that allow for underground mining, we have developed an open pit right now and we have started to get ore from the pit and processing it at the plant,” Mr Nkomo told journalists on the sidelines of the group’s annual general meeting yesterday.

“We are currently developing the second open pit. For the first 12 to 15 months we will be operating on open pit and in the process we will be de-watering the shafts.

“That process should be completed in the next 12 months or even earlier,” he said.

Danly Mine was shut down in 2013 by its former parent company, Falgold due to viability challenges emanating from fall in global prices of gold resulting in the mine incurring losses and accruing unsustainable debts.

Meanwhile, group’s overall mining operations in the first quarter of 2017 were depressed due to bad weather characterised by incessant rains.

The country experienced heavy rains at the beginning of the year, which resulted in flooding in some parts of the country, which had a knock on effect on several business across various sectors.

Erratic power supplies added to the challenges during the period although management is upbeat operations will improve in the remaining part of the year and offset the losses incurred during the first quarter.

“The weather in the first quarter affected all mining operations but we began to regain lost ground in the second quarter.

“Power availability remains a risk during the rainy season, supply is erratic and in some instances we have been going for up to three days without power,” said Mr Nkomo.

He indicated the group was working on getting constant supplies through alternative sources of energy like generators. The group recorded its first profit since 2009 amounting to $2,5 million in 2006 on increased gold production.

RioZim envisions further surge in output and earnings as it increase operational efficiencies through optimisation of the Cam and Motor gold plant.