adminThe mines were heavily flooded when they were temporarily closed, alongside other gold mines, in 2008 at the height of hyperinflation
“We have not been fully operational underground at Redwing and Arcturus mines due to flooding and the fall of gold prices,” said Mr Zenzo Nsimbi, the company’s head of corporate affairs.
“Therefore, the management saw it fit to revert to open cast mining because it encompasses low level ore extraction and it reduces costs.”
Mr Nsimbi also added that the mine has been able to pay its employees but the fluctuation of gold prices was affecting their operations.
“The payment of employee salaries has not been a problem but we are trying by all means to make sure that the needs of workers are well taken care of,” he said.
Metallon Gold Zimbabwe bought heavy-duty drainage pumps to control the escalating flooding of Redwing Mine but the problem could not be alleviated so the only underground mining taking place is at levels four to six.
“Well, Redwing is flooded especially from low level nine downwards. However, we have been able to find interesting results between level four and level six of the mine.
“This move is called low cost to near surface mining where we extract surface ore at the same time cutting costs,” Mr Nsimbi said.
Arcturus Mine posted a loss estimated at US$5 million last year while Redwing located in Penhalonga near Mutare recorded a loss of around US$3 million. Most local gold producers are facing additional pressures from rising wage obligations and high electricity bills.
Online Reporter