Story by Tapiwa Machemedze
MUTAPA Gold Resources has secured US$124 million to finance its expansion programme, with construction of an open-pit mine at Shamva Gold Mine set to begin next month as the company moves to increase gold production.
Mines and Mining Development Minister Honourable Polite Kambamura announced the development during a technical tour of Freda Rebecca Gold Mine, Mutapa Gold Resources’ largest operation, on Thursday.
He commended the company’s expansion plans, saying they would strengthen Zimbabwe’s mining sector and increase gold production.
“We are encouraged by Mutapa Gold Resources’ restructuring into smaller business units and its expansion drive. The company is targeting an increase in gold production from between 300 and 310 kilogrammes to between 570 and 600 kilogrammes by the end of the year, which is a positive development for the mining sector,” he said.
A key component of the programme is the Shamva Hill Project, where construction of an open-pit mine is scheduled to begin in August and continue until early 2029.
Mutapa Gold Resources Chief Executive Officer Mr Patrick Maseva Shayawabaya said the project would significantly increase production.
“We have two major expansion projects under way. The first is the Shamva Hill Project, which will commence in August at an estimated cost of US$162 million.
“The project includes the development of a two-million-tonne open-pit mine and a processing plant with an annual capacity of two million tonnes. This will increase production at Shamva from about 65 kilogrammes to 200 kilogrammes of gold per month,” he said.
The company is also expanding operations at Jena Mine, where monthly gold production is expected to rise from about 44 kilogrammes to 100 kilogrammes.
The expansion programme is expected to increase gold output, create employment opportunities, boost export earnings and strengthen the mining sector’s contribution to Zimbabwe’s economic growth.
