ZIMBABWE Stock Exchange-listed mining company RioZim is set to resume operations at its Cam & Motor mine in the second quarter of next year.
The Kadoma based mine, once the country’s biggest producer of gold, was closed in 1968 after it became expensive to operate.
Ashton Ndlovu, RioZim’s managing director, told The Financial Gazette’s Companies & Markets (C&M) last week that as part of the preparations, his company was negotiating with a Chinese company to supply a 1000 tonne per day plant.
He also confirmed that the company expects production at the mine to begin during the second quarter of next year.
“There is a lot of work happening at Cam & Motor mine at the moment and we are currently negotiating with a Chinese company to supply a 1000 tonne per day plant for the mine,” Ndlovu told C&M.
“We are targeting to commence operations at the mine in the second quarter of 2014.”
In its financial results for the half year to June 30, 2013, RioZim reported a net loss of US$2,3 million, recovering from a US$4,9 million loss posted during the same period last year.
Overall, the group registered a 47 percent increase in operating profit to US$2,2 million from US$1,5 million in prior period.
Revenue went up 83 percent to US$57 million compared to US$31 million last year.
The company said this was on the back of its subsidiary Empress Nickel Refinery (ENR)’s revenue growth of 204 percent, attributable to the change in the business model from toll refining to matte purchase and sale of own production.
ENR recorded a turnover of US$43,5 million from the sale of reverts, surpassing US$14,3 million registered in same period last year by 67 percent.
It reported an operating profit of US$5,5 million despite being dogged by intermittent liquid oxygen supplies and electricity tariffs.
RioZim’s gold producer Renco mine improved its average monthly production in the operational months by 4,2 percent compared to the monthly average in the first half of 2012.
This comes after it lost approximately US$4,5 million due to labour unrest disruptions in January and February which adversely affected operations.
Rio Tinto, a global resources group, early this year announced plans to dispose of its 78 percent stake in Murowa Diamonds in which RioZim owns the remaining 22 percent.
The plan however has been put on hold as they had been unable to find buyers though RioZim was set to exercise its pre-emptive rights at the right price.