Published by the government of Zimbabwe
9 November 2009
Harare — MINING giant, RioZim is planning to increase gold production to 80kg from the current 60kg a month.
According to the Kingdom Financial Holdings Limited latest weekly report, the increase would be effected at the mining giant's Renco Mine in Masvingo.
Apart from the anticipated increase in production at Renco, RioZim is also planning to open a pit gold mine at Cam and Motor Mines, where exploration is taking place.
"Renco mine should be producing 80kg of gold per month by the end of the year.
"The results of exploration work undertaken to date (at Cam and Motor) are very encouraging," RioZim managing director Mr Josh Sachikonye was quoted as saying.
Total gold production at Renco in 2008 was 456 kg and if the company reaches the 80 kilogrammes mark, then it may be able to surpass last year's levels.
In its half-year production update to shareholders in August, Rio said that it's gold output increased by 31 percent to 10 401 ounces compared to 7 931 produced last year.
Gold mining firms have found a new lease of life after the policy changes, which were put in place at the beginning of the year.
Among the measures it is no longer mandatory for gold miners to surrender their produce to the Reserve Bank of Zimbabwe as was the case last year.
Renco mine, which is one of the country's largest gold mining operation, has been operational since 1982.
The intention by Rio to ramp up production comes at a time when a number of gold mining companies have also disclosed plans to increase production after re-opening their mines due to the favourable conditions in the country.
Mwana Africa-owned Freda Rebecca, is set to receive US$10 million from IDC South Africa, which will enable it to complete phase two project that will see production at the mine increase in excess of 50 000 ounces of gold per year.
Freda resumed mining operations last month after it was placed on care and maintenance and produced its first pour of gold ore on October 13.
The country's biggest gold producer Metallon Gold reopened two of its five mines -- How and Shamva -- in June after securing a US$15 million loan.
The gold mining group is now focused on re-opening the remaining three mines and ramping up production from the current 2 000 ounces per month to between 500 000 and 650 000 ounces annually.
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