HomeNewsGold mine hits 300kg mark in one month

Gold mine hits 300kg mark in one month

BY VANESSA GUZHA

Mining giant, Freda Rebecca Gold Mine has set a new record after it produced 300 kilogrammes of gold in May this year, a figure which was last recorded 20 years ago.

Freda Rebecca Gold Mine is a subsidiary of Kuvimba Mining House, a joint venture between government, local and foreign investors.

The mine’s general manager Eliakem Hove confirmed that May had been a record breaking month for Kuvimba.

“We had a good performance where we recorded around 300kg against a plan of 244kg in one month,” he said.

“Compared to last year after taking over, we were averaging 226kg per month. The success story is a result of a combination of factors. Basically, the key issue is reinvestment in the business by our shareholders which enabled us to recapitalise as well as have sufficient working capital. Combined with that is also teamwork from the employees, management and supervision. It is a team effort that resulted in the numbers.”

Hove said Freda Rebecca was aiming to maintain the 300kg mark per month for the next five years.

The latest results mean Kuvimba has been able to double the output at Freda Rebecca within a space of a year after taking over the mine from the Zimbabwe Mining Development Corporation.

This puts Freda as the biggest gold mine in the country in terms of production.

Kuvimba runs two other gold mining assets — Shamva and Jena Gold mines.

It also has shares in the controversial Darwendale platinum project (Great Dyke Investments), Trojan Nickel Mine (Bindura Nickel Corporation), as well as in ZimAlloys Limited.

The company is in the midst of expanding its mines with BNC being the latest mine to undergo shaft deepening which will extend the life of the mine by seven years.

At ZimAlloys all creditors have been paid and the firm is now out of judicial management.

Officials anticipate production to begin before year end.

Kuvimba, which is contributing millions to the Reserve Bank of Zimbabwe auction system every month, is expected to declare a dividend this year on the back of impressive results posted during the last financial year.

Its current turnover is about US$25 million a month, according to the mine.

Firm international gold prices and nickel prices are behind the boost in turnover.

President Emmerson Mnangagwa’s government is pursuing a US$12 billion mining economy by 2023 and Kuvimba’s achievements are critical to the attainment of this goal.

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