Mining investment consortium, Chandiwana Mining Corporation, says it is constructing a processing plant at the Zvishavane-based Sabi Gold Mine as it moves to ramp up output.
Chandiwana is the majority shareholder in Sabi Mine, holding 51% stake. It has the intention to increase its shareholding in the gold miner.
Brian Chandiwana, the managing director of Chandiwana Mining Corporation, confirmed the development this week.
“The project is worth about US$7m, it’s a repleach of open castable resource oxides (plant) and we will be commissioning (it) at the end of the year. We are halfway in terms of the project,” Chandiwana said.
He said Chandiwana was also involved in the US$10m construction of a refractory gold processing plant in Kwekwe. The project is in partnership with Minerals Marketing Corporation of Zimbabwe.
The roasting Plant is expected to undertake the processing of refractory gold around the Midlands area.
Chandiwana has been instrumental in the revival of Sabi Gold Mine which at one time was closed due to shortage of working capital and ballooning debt levels.
Chandiwana partnered ZMDC to revive Sabi Mine.
At the time when Chandiwana came in, Sabi Mine required recapitalisation to the tune of US$15m to have the capacity to produce 45 kg per month of gold.
Sabi has a mine capacity to treat 450 tonnes of ore per day.
The Sabi mine claims were first pegged in 1890 with the first recorded production in 1909. It was acquired by ZMDC in 1984. ZMDC used to own 100% Kimberworth Investments trading as Sabi Gold Mine.
At full capacity, the mine can employ about 450 employees and is currently serviced by one rectangular double compartment shaft reaching down to 15 metres below 12 level elevation. Business Times