Sabi Mine to re-open early next year
SABI Gold Mine will resume operations early next year after shutting down about five years ago.
Sabi Mine judicial manager Dr Wesley Sibanda of Welsa International Chartered Accountants said cold commissioning of the mine was in progress following the completion of refurbishment work of the underground mine and plant.
He said about $5 million was channelled towards refurbishment and purchase of machinery so as to resume operations.
The Zvishavane-based gold mine has been under judicial management since 2014 after stopping operations in 2011 due to working capital constraints.
Its operations took a knock when most of its machinery was attached by the Deputy Sheriff over liabilities estimated at over $27 million against assets worth US$11,6 million, making the company technically insolvent.
“We completed refurbishment of the underground and installation of machinery sometime ago. We expect to start doing the initial running next month and thereafter we expect the mine to be officially commissioned by the Minister of Mines and Mining Development (Walter Chidhakwa),” said Dr Sibanda.
The revival of the mine follows a joint venture agreement between Chandiwana Mines and the Zimbabwe Mining Development Corporation (ZMDC).
Chandiwana Mines is a consortium of 5 000 Zimbabwean mining experts based in the Diaspora and locally, which agreed to plough US$26,1 million into the revival of Sabi Gold Mine, a key contributor to economic development. ZMDC owns 100 percent of Kimberworth Investments (Pvt) Limited which trades as Sabi Gold Mine.
At its peak, Sabi Mine could employ up to 450 people and used to significantly contribute, not only to the Zvishavane economy, but also to the national economy. The mine has a capacity to treat 450 tonnes of ore per day.
The mine’s claims were first pegged in the 1890s and production started in 1909. Sabi was acquired by ZMDC in 1984. ZMDC also wholly owns several mines including Jena Gold Mines which is based in Silobela, Midlands Province and Elvington Gold Mine based in Chegutu.