RioZim to build US$10m gold processing plant
Harare- Zimbabwe Stock Exchange listed RioZim says it will this year construct a US$10 million gold processing plant at its Cam and Motor gold mine in Kadoma to increase profitability.
The move is in line with government’s economic blue print the Zimbabwe Agenda for Sustainable Socio and Economic Transformation (ZIMASSET) which emphasises value addition of locally produced minerals before exportation.
Cam and Motor gold mine which is located in Mashonaland West province, was reopened last month after it has been redundant since 1968 due to swelling production costs produced in excess of 150 tonnes of bullion during its life time.
RioZim said ore from the gold mine was being trucked to the Dalny Mine Plant in the area for processing.
“We are scheduled to build our own plant during the year 2015 at a cost of US$10 million,” it said.
The Kadoma mine is currently producing 1 700 ounces of the yellow metal per month.
RioZim recently announced that it had obtained exchange control approval from the Reserve Bank of Zimbabwe for GEM RioZim Investments Limited to underwrite a US$10 million capital raising initiative.
GEM RioZim Investments Limited controls 24, 97 percent shareholding in RioZim.
The group said it will make a renounceable offer of 66 666 667 ordinary shares of a nominal value of US$0,01 each in the company’s share capital, at a subscription price of US$0,15 each to existing shareholders in the ratio of 124 931 new ordinary share for every 100 ordinary shares already held by shareholders.
The rights offer opens on June 8 and closes on June 26. Shares arising from the rights offer will be listed on the Zimbabwe Stock Exchange on July 6.
RioZim said the new plant will be operational next year.
“Our own plant will be commissioned in 2016,”it said.
Last year, Zimbabwe produced 14 tonnes of gold.
The plant at Cam and Motor gold mine is expected to increase profitability of RioZim after posting a loss last year due to a drop in output at its other mining units and low mineral prices on the international market.
The plan by Rio Zim would also create more jobs for people in the province, particularly in the small town of Kadoma and the surrounding areas.
RioZim is a wholly owned Zimbabwean company with other interests in energy, nickel, coal and copper.
Gold remains one of Zimbabwe’s major foreign currency earners in the mining sector. Other minerals on the list include diamonds, platinum and chrome.