Kuvimba Mining House has injected US$6 million for an expansion drive for its Kwekwe-based gold operations at Jena Mine.
On completion the expansion is expected to ramp-up production from monthly 24kg of gold to 83kg – an increase of 330%, NewZimbabwe.com has gathered.
Kuvimba Mining House chief executive David Brown confirmed the development.
“Jena Mine a subsidiary of Kuvimba Mining House has a strategic plan to restructure itself to a mid-tier gold producer through organic growth phases over a two-year period,” he said.
“The organic growth will be achieved through the plant and underground mine expansion optimisation and exploration of the ore body to a depth of 500m.”
“The aim is to ramp up ore production from the current 8 000 tonnes per month to 30 000tonnes per month over the next 24 months. This translates to an increase in gold production from the current 25kg to 83kg per month, which equates to a 330% increase. The crushing, milling and leach plant capacity will simultaneously be upgraded to match the ore production ramp-up schedule,” Brown said.
“Growth capital of approximately US$6 million is required to execute the exploration programmes and to fund the expansion of the underground infrastructure, the shaft deepening plant expansion, and the extension of the tailings storage facilities.”
He said the project started last May, and in June, Jena Mine produced 31kg of gold indicating the positive development the expansion drive is bringing.
Jena Mine has a strong workforce of 703 employees.
The government and various local investment vehicles such as Sovereign Wealth Fund of Zimbabwe, Public Service Pension Management Fund, Deposit Protection Corporation, Insurance and Pensions Commission, Datvest Nominees, and National Venture Capital Company of Zimbabwe own Kuvimba Mining House Group.