Chinese firm invests in road rehabilitation

Chinese gold mining firm, Ming Chang Sino-Africa Mining Investments Private Limited,
has started a road rehabilitation programme in Odzi, helping link business centres and
major highways in a development expected to drive economic activity in and around the
area.

The company has invested significantly towards the local roads project, six months after
commencing operations in the area, which has brought relief to the community and
surrounding areas, which were facing challenges connecting to markets.

The company has other gold mining operations in Mazowe and Kwekwe. The road
projects complement similar efforts by the Government, which is currently working on
several multi-million dollar (US$) road infrastructure projects to improve the country’s
roadnetwork.

Mine director Liu Xialong said road works done so far involved resurfacing and
improving drainage.

“The road project is from the riverside and goes beyond our mine and shopping centre. It
is at least 15km and the cost of the project is at least US$10 000 per km,” he said on the
sidelines of a tour of the mine’s various projects in the area.

A good transport infrastructure system is expected to also help other small-scale miners
in the area link with other businesses across the value chain. Gold in particular is the
country’s single largest export earner ahead of tobacco.

Small-scale gold producers account for more than half of the gold produced in Zimbabwe
despite facing a host of operational challenges. According to the Reserve Bank of
Zimbabwe (RBZ) gold deliveries to Fidelity Gold Refinery (Private) Limited (FGR)
increased by 19,1 percent to 35 280kg last year. The annual contribution by primary and
small-scale gold producers increased by 0,3 percent and 30,4 percent, respectively.

Ming Chang’s roads rehabilitation project is also expected to assist farmers in the area
through an easy road network, and create employment while discussions are underway
with the community for other projects as part of its corporate social responsibility.

“We started operating last year in June with so much help from the community and we
owe them. We are in discussions with local authorities for borehole projects, starting
with three that are being finalised,” Mr Liu added.

Currently, at phase one, the mine employs 50 people, the bulk of whom are from the local
community. At the third and final phase, targets are to directly employ 300.

Mr Liu has however bemoaned the heavy rains for disrupting progress of the projects as
well as the mining operations. He said the mine had the capacity to process 10 000 tonnes
of ore monthly, but this had been significantly reduced due to heavy rains.

He said further exploration work will be carried out to guide the expansion initiative.
“Our next development depends on the quality of deposits and the mine and
environment,” he said, adding that the investor was well equipped to expand using own
resources. We are currently doing open cast mining and it’s cheaper in terms of
production costs, but the cost will rise as we go deeper,” Liu added.

The company has 16 claims and it is currently working on one of them.

“Indications are that there are very good deposits and the mine life is quite long. We are
prepared to invest millions on this project, but I can’t give you the specific numbers at
this stage,” he said. In phase two of the project, the mine should employ 60 more
permanent employees and the combined figure could double as the project grows.-The Herald