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Mwana owns and operates Freda Rebecca Gold Mine and Trojan Nickel Corporation.
In a trading update, Mwana chief executive Mr Kalaa Mpinga said poor market conditions had forced it to introduce strategies to mitigate effects of weak commodity prices on operations at both its local mining units.
“An exceptional amount of effort has gone into the Trojan restart over the course of the past year, and much progress has been made culminating in sale of first concentrate in April.
“However, due to a sustained decline in commodity prices, most crucially for Mwana, in the prices of gold and nickel, we have embarked on a significant cost-cutting exercise at corporate and project levels,” he said.
Many gold miners across the world have felt the effects of volatile gold prices and have introduced cost-reducing measures at their operations.
For example, gold miner New Dawn Mining Corporation early this week said it might be forced to fold its operations in Zimbabwe if the cost-cutting measures it introduced do not yield desired results.
Gold prices opened the week on US$1 322,50 an ounce, its highest since June 20 and at least US$600 below a lifetime high of US$1 920,30 struck in 2011.
Meanwhile, Freda Rebecca sold a total of 14 716 ounces of gold in the quarter ended June 30, 2013 while operating costs increased by 5,7 percent.
Mr Mpinga acknowledged the difficulties of the previous quarter, which were punctuated by a leach tank accident that halted operations at Freda Rebecca.
“It has been a quarter of mixed fortunes for Mwana. Freda Rebecca continues to perform well, remains cash generative, and I am delighted by the progress made since the leach tank incident earlier in the year.”
He said construction of the tailings pilot plant to test the viability of treating Freda Rebecca’s tailings dumps was progressing well and the plant would be commissioned soon. — New Ziana.
Online Reporter