Zimbabwe mine gold output tops target
Gold miner Mwana Africa's Zimbabwe mine output has risen to a monthly average of 4,500 ounces, outstripping its targeted annual production rate
The AIM listed firm's Freda Rebecca mine, 85 kilometres northeast of Harare, produced 27,240 ounces of gold in the financial year to March 2011, company figures show.
Ms Freda Rebecca GM of Toindepi Muganyi said that "We are currently producing at a rate of 4,500 ounces per month, which exceeds our phase two target of 50,000 ounce. We have operated at 100,000 ounces per year before and we can still get back to those production levels."
The mine produced 112,164 ounces in 2000, before an economic meltdown critics say was triggered by president Robert Mugabe's seizure of white-owned farms.
Ms Freda Rebecca suspended mining operations in 2007 at the height of a political and economic crisis, but resumed production in 2009 after a coalition government set up by Mugabe and Prime Minister Morgan Tsvangirai adopted the use of foreign currencies and allowed firms to sell their gold and keep all the proceeds.
Speaking during the tour, mine manager Eliakem Hove said Freda Rebecca now had its sights set on ramping up production to 70,000 ounces per year, subject to board approvals and the availability of capital.
Hove said that "There are plans to increase production to 70,000 ounces, taking advantage of the higher gold price and the current liberalized environment adding the mine was working on reducing costs from the current USD 681 per ounce to around USD 650 per ounce in order to maximize profitability.
(Sourced from Reuters)