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Business Reporter
RIOZIM, the diversified Zimbabwe Stock Exchange (ZSE)-listed mining firm, has placed its gold mining unit, Dalny under care and maintenance after it incurred heavy losses during the past 18 months, according to official correspondence seen by this publication.
Dalny, located in the mining district of Chakari, near Kadoma, suffered a loss of nearly US$8 million and produced only 3 kilogrammes of gold during the first quarter of 2022.
In the six months to June 2022, about 8kg of gold was produced at the mine against 105kg produced during the same period last year when the mine was fully operational.
RioZim said the decision to place the mine under care and maintenance was to avoid an overall “negative impact on the group’s overall performance”, according to the correspondence.
Dalny Mine suffered from unsustainable low grades from its pits, which resulted in the mine suspending operations. Its underground shafts are flooded and will require extensive dewatering to bring them to mineable conditions.
Most employees were transferred to other mines. Other gold mining operations owned by RioZim are Cam and Motor in Kadoma and Renco Gold Mine in Masvingo.
RioZim spokesperson Mr Wilson Gwatiringa could not be drawn to provide more details.
During the first half of the year, RioZim’s gold production for the period declined by 30 percent to 393kg compared to 564kg achieved in the same period in the prior year.
The subdued production was mainly due to low output at Dalny during the period, coupled with sub-optimal capacity utilisation at Cam & Motor the suspension of the one-step operation to pave way for the resumption of mining activities at the mine.
RioZim separated from Rio Tinto plc in 2004 and became a wholly owned Zimbabwean-owned company that also holds coal and nickel assets. RioZim, through its subsidiary Rio Gold, acquired the Danly Mine from Palatial Gold Investment around 2017.
Meanwhile, the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has demanded decent working conditions for mine workers. Addressing journalists last Friday, a day which coincided with the World Day for Decent Work, ZDAMWU secretary general Mr Justice Chinhema implored local mining firm to invest more in the safety of the workers and provide a decent wage.
Commemorations were scheduled to be held at RioZim’s Cam & Motor last week Friday,
“We had made a deliberate choice to commemorate the Word Day for Decent Work at RioZim because our members there are facing a plethora of challenges across all its mines,” said Mr Chinhema. “With the recent closure of Dalny mine and threats to retrench all permanent workers at ENR (Empress Nickel Refinery), we then felt these workers and their families require solidarity in their hard times.”
“The challenges include late payment of salaries, poor working conditions, disregard of known workplace engagement platforms like the works council, poor safety, and health standards, rampant casualisation of labour and the recent termination of employment contracts for all fixed-term contracts,” Chinhema added.
Mr Chinhema said several mining companies were disregarding safety regulations.
“We are fed up with the attitude and practices of some companies currently operating big and small mines. We want prioritization of safety and health, living wage linked to the poverty datum line and value of mineral mined,” said Mr Chinhema.
“We want to see mines that complement government policies on job creation and job security.
Online Reporter