Local investor boosts Sabi Gold Mine production

By Mthokozisi Dube

Large-scale gold producer Sabi Gold Mine is targeting to increase its monthly production from 20 to 50 kilogrammes of bullion gold by next year after the injection of US$19 million by a new investor.  

Sabi Gold Mine was operating in a stop and start manner before it was closed in 2014 owing to an unclear mine lifespan.

The mine was, however reopened in 2017 after a new investor came on board through a joint venture partnership.

Buoyed by sound policies of the Second Republic, the mine embarked on a revival strategy, hiring 750 workers and offsetting part of its legacy debt which had seen creditors attaching mine assets.

Delivering a presentation during a familiarisation visit by the mines and mining development parliamentary portfolio committee this Thursday, the General Manager, Mr George Chandiwana highlighted the future prospects of the mine having set a target of 20 kilogrammes of gold per month.

“We have injected 19 million all in all and we channeled 6 million for exploration of the mine. the biggest challenge with the mine has been that you mine and stop operations,” he said.         

Government’s ease of doing business reforms have also incentivised local business people to venture into mining.                                 

Brian Chandiwana Sabi Gold Mine Managing Director said: “They are a lot of business people who can invest in mining. Ours was a journey with some lessons. We started in chrome and learnt our lessons up until we tried gold and we are happy with the journey so far.”

The partnership has also excited judicial manager Mr Oliver Mutasa.                

“Most of the debt from third part creditors has now been paid,” he said.

Chairperson of the Parliamentary Committee on Mines and Mining Development Honourable Edmond Mukaratigwa commended Sabi for implementing a sustainable revival strategy.                

“My understanding is that the mine is under judicial management because most creditors were attaching the assets. we are excited the joint venture has paid off dividends, but we are saying gold mines need to guard against gold leakages. we are told equipment coming from south Africa and that will actually add to their production,” Honourable Mukaratigwa said.

The increase in gold output at Sabi mine is expected to contribute significantly to the envisaged US$12 billion mining industry by 2023.

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