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Renco’s gold output declines

Eric Chiriga

RENCO Mine’s gold production declined to 6 012 ounces during the second quarter of the year, 100 ounces down on the comparable period the previous yea


Gold currently costs US$618 an ounce and the lost production is worth US$61 800.

In a quarterly production report by parent firm RioZim, the company said the gold was produced out of 64 714 tonnes of ore with an average ore grade of 3,54 grammes per tonne.

Renco produced 5 787 ounces in the first quarter this year.

The first quarter’s output was produced out of 62 801 tonnes of ore while that of the fourth quarter for 2005 was produced from 60 470 tonnes of ore.

Last year, Renco produced a total of 24 204 ounces out of 248 454 tonnes of ore.

The gold mine’s highest output of 6 347 ounces was in the third quarter last year.

The decrease in RioZim’s gold production comes at a time when gold producers, particularly Falcon Gold Zimbabwe, a subsidiary of Halogen Societé Anonyme, are struggling due to viability problems.

RioZim also reported a fall in output at its nickel producer, Empress Nickel Refinery (Empress).

Empress produced 1 396 tonnes of nickel in the first quarter of this year against 1 585 tonnes produced during the same period the previous year.

Empress produced a total 6 518 tonnes of nickel in the year 2005.

Diamond production at Murowa Diamond rose 17 103 carats to 84 526 carats during the second quarter.

RioZim said Murowa recovered a total 251 152 carats in 2005.

RioZim said its coal producer, Sengwa Coal Mine, which started production in the fourth quarter of last year, sold 47 417 tonnes in the second quarter this year.

Since its operations begun, Sengwa’s coal sales have almost doubled.

RioZim operates Sengwa in partnership with Beta Coal, a subsidiary of Beta Holdings.

It recently assumed operational control of the coal-rich Sengwa following a new agreement with Beta Coal.

RioZim is currently carrying out feasibility work on a small open-cast gold resource with prospects of starting operations in the fourth quarter this year.

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