RioZim targeting 50 percent increase in gold production
RIOZIM’S gold production for the year 2016 is forecast to be 50 percent above prior year level of 1 200 kilogrammes (kg), largely driven by Cam and Motor Mine, which is now fully operational.
Speaking at the group’s annual general meeting, group chief executive officer, Noah Matimba, said operations in the first half recorded an improvement compared to the same period last year.
“We are anticipating full year gold production to be 50 percent better than 2015, and a lot better than 2014, driven by Cam and Motor who would have operated for a full year opposed to six months it operated last year,” he said.
The nickel and copper refinery was still under care and maintenance because the group has been unable to get material from its key supplier. “So we are currently relying 100 percent on gold production and the operations are currently performing better than last year,” he said. At Renco, RioZim is also performing much better than prior year due to works that were done to capacitate the mine.
“It (Renco Mine) is operating at full production. Because of financial problems in the group, the plant at Renco had deteriorated, but since H2 (the second half of) 2015 we have deliberately resourced the plant to achieve full production,” he said.
Overall gold production for the group in 2015 increased 85 percent from 648kg to 1 200kg through a 16 percent increase in production at Renco from 648kg to 750kg, while the reopening and commencement of production at Cam and Motor Mine contributed 450kg. On Murowa Diamonds, which is an associate company in which the group holds 22 percent shareholding, Matimba said the unit is currently undergoing resuscitation after Rio Tinto’s pullout and is expected to commence production in the second half of the year. In 2015, the company accounted for US$2,2 million of the group’s loss.
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