via Zim firms opt for contract mining amid money challenges by CAJ News Monday, 12 May 2014
RIO Zim, the Zimbabwe Stock Exchange (ZSE) listed firm, is seeking companies to carry out contract mining at its Cam and Motor mine in Mashonaland West.
It is the latest company in Zimbabwe to consider contracting mining services as they battle to raise capital to buy new mining equipment.
Rio Zim, which has embarked on efforts to revive the mine closed 28 years ago, announced that prospective partners must have capacity to mine 270 000 tonnes per month.
“Work will include the opencast mining sequence of clearing, drilling and blasting overburden, overburden mining, drilling and blasting of ore andore mining,” stated Rio Zim.
The company added that that prospective contractors must also be able to do haulage road maintenance, dust suppression, drilling to probe old working and ground support.
At its peak, Cam and Motor was producing 150 tonnes of gold annually, then the country’s largest producer of the precious metal.
Apart from gold, the company also mines nickel, copper and coal.
It runs Renco Mine, the country’s biggest gold mine, and Mine Cola in Gokwe.
Rio Zim is flowing the footsteps of Zimbabwe’s biggest coal miner-Hwange Colliery- which has awarded Portuguese conglomerate Mota-Engil a five year mining contract worth $260 million.
Most mining companies in Zimbabwe are struggling to raise fresh capital to buy new equipment.
The companies are running on obsolete machinery, much to the reduction in output.
COMMENTS
This is how it goes with the indigenisation drive. More and more foreigners are brought in to do the real work.
Another panic mistake.
Why risk re equipping a large mining concern when Zanu (waiting in the wings – licking their lips) will come along and demand 51%. Smart companies contract out the work and do not own all this equipment.