SABI Gold Mine in Zvishavane has ramped up production to 35kg per month on the back of capital injection from its new partner, Chandiwana Mining Corporation.
The mining firm resumed operations last year after its owner, the Zimbabwe Mining Development Company (ZMDC), entered into a deal with Chandiwana. The mine had closed operations in 2014 due to working capital constraints.
Chandiwana, a local investment consortium, injected $26 million in fresh capital into the mine to kick start operations.
Sabi judicial manager, Mr Wesley Sibanda, said the increase in production has improved financial status of the mine, resulting in the company paying off some of its creditors.
“We have been producing an average of 25 kg per month since we opened and now we have ramped up production to close to 35kg of gold. This has largely been due to further financial injections by the company shareholders,” he said.
“We started the process of paying off creditors in September and the process is still ongoing. We have a huge creditors’ list, which I cannot divulge but we have projected that we would have paid all those whom we owe by 2022. After that we will then wean off the mine from judicial management.”
Under the arrangement workers’ arrears, which had accumulated to $2, 8 million are also being settled. The gold mine has since re-engaged some of its employees and so far it has a staff complement of about 435. At its peak Sabi produced an average of 50 kg of gold per month. However, Mr Sibanda believes the company can surpass the target in future and reach at least 70 kg of bullion per month.
- Chronicle
