18 November 2016

Zimbabwe: ZMDC Seeks $6m to Recapitalise Jena Mine

Tinashe Makichi — The Zimbabwe Mining Development Corporation is close to securing close to $6 million from Fidelity Printers and other private sources for the recapitalisation of Jena Mine.The $6 million is part of plans by the mining company to revamp production and improve efficiencies over three phases.

ZMDC acting general manager Dr Farai Karonga confirmed to The Herald Business that the group is in the process of trying to secure funding for Jena Mine from different sources.

"We have not secured the funding yet but we are in negotiations with Fidelity Printers and other private sources," said Dr Karonga.

ZMDC plans to introduce a phased recovery approach towards its three gold mines that were either shut down or put under care and maintenance.

The mining group was established by an Act of Parliament Number 31 of 1982 and the aim was to create a vibrant and versatile mining power house necessary to transform Zimbabwe's mineral wealth to the world class standards.

ZMDC wholly owns Jena Mine, Elvington Mine and Sabi Mine which are currently under judicial management.

Sabi needs recapitalisation to the tune of $15 million to bring production capacity to 45kg of gold per month. Its break-even point is 26kg per month but run off was suspended in May this year to pave way for mine development.

Meanwhile, a source close to developments at ZMDC told The Herald Business that the departure of top management at the company has already started paying dividends.

"Since the departure of top management, the company has started recording a notable increase in production especially on gold operations. If such a trend continues, it is an indication that ZMDC is on its way up," said the source.

ZMDC recently dismissed its top three executives, general manager Sydney Simango, chief operating officer Caesar Zishumba and finance director Wilson Chinzou over their alleged failure to drive the state mining vehicle forward in line with expectations of the board.

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