Mwana Africa to restart gold production at Zimbabwean mine
Hong Kong (Platts)--25Mar2009
platts.com
Mwana Africa plans to restart gold production at the idled Freda Rebecca
mine in Zimbabwe as a result of new gold export regulations in the country,
the London-listed company said Wednesday.
Mwana acquired a 100% interest in the mine from AngloGold Ashanti in
April 2005, and has committed to sell a 15% stake to a local investor.
In 2002, production from Freda Rebecca reached 98,000 oz of gold, but
mine output declined subsequently due to pricing and operating difficulties,
and the mine was placed on care and maintenance in 2006, the company said.
A new directive issued by the Reserve Bank of Zimbabwe in February set
out revised export procedures for gold produced in Zimbabwe, under which "gold
producers may themselves make arrangements for the refining and sale of gold,
and are entitled to receive a price based on that prevailing in the
international market for bullion, thereby removing the historic surrender
requirements to the RBZ," Mwana said in a statement.
Companies are also authorized to operate foreign currency accounts, the
company said, adding that on March 18 the country's national budget
presentation announced the termination of the requirement to submit a
proportion of foreign currency earnings to the RBZ for conversion to Zimbabwe
dollars.
"These developments, together with sustained strength in the gold price,
enhance the economic potential of the Freda Rebecca gold mine," Mwana said.
Mwana has appointed geological, mining, and engineering consultants to
plan and evaluate a ramp-up program for the plant. Based on current
assumptions, it is estimated that around a further $6 million will be required
to bring the first phase of the plant back to production within four to six
months, the company said.
Since acquiring the mine, Mwana has invested over $7 million at Freda
Rebecca, including refurbishment of the mining fleet, drilling equipment,
crushers, mill circuit and leach tanks, and electrical and control systems.
Further investment will be required to complete the mining fleet and
commission the number one mill circuit, the company said; at present, the mine
is partially flooded, and a dewatering program has begun.
As of December 2006, the mine -- situated near the town of Bindura,
around 90 km northeast of Harare -- had 4.165 million mt of proven and
probable reserves grading 2.6% gold, equivalent to 348,000 oz of gold.
--Andy Blamey, andy_blamey@platts.com |
