PICKSTONE Peerless Mine in Chegutu, which has for the past seven years operated an open pit that is nearing the end of its life span, has invested US$28 million to commission a new underground shaft to extract gold.
The move to migrate to underground operations was taken after it had become unviable to continue open-cast mining at the site in Mashonaland West province’s gold belt.
As of 30 June 2020, Pickstone’s underlying claims had a total measured and indicated gold resource of 368,313 ounces (11,456 kg), and a total resource (including inferred) of 789,424 ounces (24,553 kg). Production levels are expected to reach 250 kgs per month by 2025.
President Emmerson Mnangagwa on Wednesday officially opened the new operation and commended the investors for pouring in huge sums of money into the extractive business.
“I am informed that an investment amounting to US$22 million was injected for Phase 1, which included equipping two existing shafts. A further US$28 million was invested under Phase 2, for the installation of new underground infrastructure to allow exploration and mining from lower levels,” Mnangagwa said.
The President highlighted major strides the mining industry has taken in the last few years to help accelerate development, production, productivity and the realisation of Zimbabwe’s economic prosperity.
“The growth of the mining sector since 2018 from a mere US$2,8 billion industry to the current levels of close to US$12 billion has positively contributed to the overall growth of our national Gross Domestic Product (GDP). Congratulations to the mining sector.
“The Second Republic, since its inception, has always been about accelerated development, production, productivity and the realisation of economic prosperity and a higher quality of life for all the people of Zimbabwe.
“This agenda remains on course despite the climate change-induced drought that we are currently experiencing in our country and indeed the SADC sub-region.”
The President said it was encouraging to note that investors were confident of Zimbabwe’s conducive business environment.
The Pickstone Peerless Mine project is reflective of the company’s long-term commitment to set up shop in Zimbabwe, a development that would see employment creation.
“The decision to embark on this underground mining project demonstrates Pickstone Peerless Mine’s long-term commitment to establishing sustainable operations in Zimbabwe.
“It is indeed an expression of the confidence the company has in the Second Republic’s policies and the conducive business operating environment which we continue to foster.
“This underground mining project signifies the opening of a new chapter for the Pickstone Peerless Mine community and the industry as a whole,” he said.
President Mnangagwa commended the mining industry for contributing positively to the country’s economic growth.
“The creation of 530 new jobs is most welcome and highlights the commitment of investors to complement my Government’s efforts in building a stronger and more prosperous Zimbabwe.”
He said the establishment of such projects should translate into the development of local economies as the people should be the first beneficiaries, stressing that harmony between the mine, community and artisanal miners should be propagated.
“Miners and the communities to which they belong must continue to enjoy the benefits of our hard-won independence through the growth and expansion of our mining sector.
“Hence, the growth of Pickstone Peerless Mine must create prosperity at many levels and translate to multi-layered development of the local economy, here in Chegutu district as well as positively impact the provincial GDP growth,” he said.
“Stakeholders around this mine are called upon to adopt a more collaborative and coordinated approach towards entrenching harmony and peace while also addressing unemployment in the broader surrounding communities through training of the youth, including artisanal miners in professionalising their mining activities, among other skills.”
Mnangagwa said his government will continue to invest in science, technology and innovation to ensure institutions produce well-equipped personnel.
“I urge Pickstone Peerless Mine and other stakeholders to embrace new technologies for the accelerated growth of our mining sector,” he said.
Uncertainty among investors was allayed with Mnangagwa saying his so-called ‘Second Republic’ will continue providing adequate support for growth as this will be mutually beneficial.
“I want to assure our investors that my administration will continue to provide unwavering support to your operations for the benefit of both the investors and the people of Zimbabwe.
“In this regard, the Ministry of Mines and Mining Development is directed to work concertedly to provide timeous and professional services towards the further development and growth of our country’s mining sector,” Mnangagwa added.
Chaired by Stanford Moyo, Pickstone Peerless Mine is owned by Dallaglio, a mining unit of Padenga Holdings Pvt Ltd which also operates Eureka Mine in Guruve.
Moyo is quoted in the media as saying his organisation has invested close to US$90 million in mining operations in Zimbabwe. – (New Zimbabwe)
