21 January 2018
   
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
MORE NEWS
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
MORE SPORTS
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 

Sabi Gold Mine to reopen after $13mln deal

18/03/2017 00:00:00
by Source.co.zw
 
Mines and Mining Development Minister Walter Chidhakwa
 
RELATED STORIES

GWERU: Commissioning of  Sabi Gold Mine in Zvishavane has been set for the end of March after a $6 million investment by a private company and government arranged a $7 million deal for the supply of equipment, mines minister Walter Chidhakwa has said.

The mine was placed under judicial management in September 2014 after it  ceased operations in 2011 due to working capital constraints.

In an interview after touring the mine recently, Minister Chidhakwa said the government secured $7 million worth of mining equipment for the mine while Chandawana Minerals Company invested $5,9 million.

The mine has started operating although at a lower scale as commissioning has been set for the end of the month.

“Sabi Mine was closed some time ago. Some work has been taking place at the mine under the judicial manager and we have had difficulties about the structure that was under design – firstly there was a loan agreement signed between judicial manager and Chandawana.

"They started talking about a joint venture and we were not sure what the joint venture was all about because this is a government asset and we can’t have a situation where a government asset is parcelled out in that manner. So we have taken a position that there be a structure for them to operate a government asset which must remain under government control and ownership,” he said.

Minister Chidhakwa said government had secured mining equipment for the mine to ensure that its target gold mine output of about 25 kilogrammes a month would be achieved.

“We must find a way of resuscitating them (government mines), making them work for the economy. What I understand from them is that they have invested $5, 9 million into the operations and the target as of now is to (achieve output of)  20-25 kg of gold per month. But I said I need to see it for myself so that we find a way of supporting them. But from a government perspective we are securing equipment worth $7 million for them.”

Previously the mine, a subsidiary of the state-owned mining investment vehicle, Zimbabwe Mining Development Corporation (ZMDC) sold off its dumps to raise $10 million to pay off creditors.



Advertisement

Sabi would be the third largest mine to operate in Zvishavane after Mimosa and Murowa Diamond Mine. At its peak, it produced 50kg of gold per month with a total workforce of 420.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker