Govt avails $7m for Jena recapitalisation exercise

By | June 11, 2017

Source: Govt avails $7m for Jena recapitalisation exercise – Sunday News Jun 11, 2017

Munyaradzi Musiiwa, Midlands Correspondent
THE Government has availed $7 million to debt- ridden Jena Mine in Silobela to recapitalise one of the country’s biggest gold mining companies in the country.

In an interview on the sidelines of the tour of Murowa Diamonds corporate social responsibility projects last week, Mines and Mining Development Deputy Minister Engineer Fred Moyo (pictured far right) said the Government had secured $7 million to recapitalise Jena Mine which had suspended production after failing to settle its debts.

Eng Moyo said the Government gave Midlands, Matabeleland South, Mashonaland West and Central Provinces who have vast gold deposits, a target annual output that would contribute towards the achievement of the 28 tonnes target. He said the four provinces were expected to contribute 70 percent of the targeted gold output. The Government is targeting generating $3 billion from mineral exports this year with chrome expected to contribute over 50 percent. Eng Moyo said Jena Mine was one of the strategic gold mines that would contribute immensely towards the achievement of the target.

“As Government we have secured $7 million for Jena Mine so it resumes operations. Jena is one of our strategic institutions that would contribute towards the achievement of the 28 tonnes. We have also spoken to the creditors who were attaching properties at the mine to stop and allow the mine to be productive. We are expecting Midlands, Matabeleland South, Mashonaland West and Central provinces to contribute two thirds of our gold output. We have a target of 28 tonnes of gold this year. We have given these provinces each a target output,” he said.

Eng Moyo said Jena was expected to produce 30 kilogrammes of gold per month. He said Sabi Gold Mine in Zvishavane had also resumed operations and was expected to produce 30 kilogrammes per month.

“As a province (Midlands), we have failed to meet our target of a tonne in the first quarter. This was mainly because Jena Mine was not operational. Sabi Gold Mine has resumed operations and we have given them a target of 30kgs a month. This will help us meet the annual target as a province,” he said.

Eng Moyo said Sabi was still grappling with the challenges of illegal gold panners who were sneaking into the mine and stealing gold ore and sometimes killing each other.

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