By Almot Maqolo.
HARARE – (News of The South ) -Zimbabwean gold miner RioZim said it is engaging the central bank for an upward review of its foreign currency retention in order to cover for production costs as well as timeous completion of the Biological Oxidation (BIOX) Project.
In 2019, the central bank gazetted thresholds of 55% to the producers and 45% to RBZ, but players continues to advocate for a review of the retention to 100% to the producers. However, the apex bank said mining industry would not be considered by treasury because the revenue was needed to fund other arms of government.
As expected like any other business, progress on BIOX project was significantly affected by acute funding challenges.
“The company is however, in discussions with various stakeholders for possible funding of the project,” RioZim said in a statement.
“Engagements with the Central Bank will continue for an upward review of the company’s foreign currency retention for the Company to meet its operational requirements and successfully deliver its BIOX plant in the set timelines.”
RioZim gold production declined by 41% in the first quarter ended 31 March 2020 when compared to same period in 2019 owing to erratic power supplies. But, this was abated towards the end of the quarter as power supply improved.
Gold price averaged US$1 562/oz, reflecting a 17% increase from average price of US$1 336/oz in same period last year.
Cam & Motor Mine – mining activities were all concentrated at One Step Mine during the quarter with the company hauling ore to the Cam and Motor plant. However, the ore resources at One Step are of significantly lower grades compared to the Cam ore resources.
“The effect of processing the low-grade ores resulted in production dropping by 62% compared to the first quarter of 2019, where production was from higher grade Cam resources,” it said.
At Dalny Mine production fell by 52% compared to the same period in 2019 due to erratic power supplies.
Renco Mine recorded a 9% growth in production volumes compared to Q1 of 2019 largely on improved plant availability and reduced load shedding during the quarter.
The Empress Nickel Refinery (ENR) remained under care and maintenance throughout the quarter. Diamonds production at the group’s associate Murowa Diamonds (Private) Limited went down by 61% compared to Q1 2019. Again, the lower volumes were attributed to inconsistent power supply during the period.
The miner was exempted from shutting down and continued to operate normally albeit under the strict guidelines recommended by the Ministry of Health.
The challenging operating environment coupled with the impact of COVID-19 continues to put pressure on the group in the second quarter, the miner added.
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