adminLovemore Zigara Midlands Correspondent
ZVISHAVANE- based Sabi Gold Mine has ramped up production to 35 tonnes per month on the back of capital injection, which the company has been receiving constantly from its new partner Chandiwana Mining Corporation. The mining firm ceased operations in 2014 due to working capital constraints and resumed operations last year after its owner the Zimbabwe Mining Development Company entered into a deal with Chandiwana Mining Corporation.
Chandiwana, a local investment consortium, injected $26 million into the mine to kick-start operations. Under the arrangement workers’ arrears, which had accumulated to $2,8 million are also being settled.
The gold mine has since re-engaged some of its employees and so far the Zvishavane based mine employs 435 workers.
Sabi judicial manager Dr Wesley Sibanda said the ramping up of production has pushed the mining firm into a sound financial position, which has resulted in it being able to pay off some of its creditors.
“We have been producing an average of 25 tonnes per month since we opened and now we have increased our production to close to 35 tonnes of gold. This has largely been due to further financial injections by the company’s shareholders,” he said.
Dr Sibanda said they had also started the process of paying off creditors.
“We have a huge creditors list, which I cannot divulge, but we have projected that we would have paid all of them by 2022. After that we will then wean off the mine from judicial management,” he said.
At its peak Sabi produced an average of 50 tonnes of gold per month. However, Dr Sibanda believes that the company can surpass the target in future and reach at least 70 tonnes per month.
Online Reporter