Mining group secures US$17m BIOX plant
DIVERSIFIED mining group, RioZim, is installing a US$17 million Biological Oxidation (BIOX) plant after the company successfully secured the funding to complete the project, which is set for commissioning before year-end.
In May, the mining concern announced that it had taken delivery of equipment for the proposed project being implemented at the firm’s Cam and Motor gold mining operation in Kadoma.
In 2019, the group embarked on various capital raising initiatives to fund the completion of the BIOX plant, which holds the future of Cam and Motor Mine.
Such capital raising initiatives included approaching RioZim’s bankers and other financial institutions and financiers both local and foreign for possible US dollar funding.
In a statement accompanying the firm’s financial results for the half-year ended June 30, 2021, RioZim said the installation for the structural components of the BIOX Plant Project were at an advanced stage.
“The company managed to secure funding for the completion of the BIOX project and all the activities necessary to commission the project are being accelerated. The flotation section, which was completed in prior years, is being test run in preparation for the commissioning of the plant,” it said.
RioZim said despite the delays experienced in the installation due to the Covid-19 related lockdowns and restrictions, they are confident of completing and commissioning the BIOX plant project before the 2021 financial year end.
When commissioned, it is hoped that the plant will go a long way in ensuring RioZim beneficiates its precious minerals by processing pure oxide ores to make good grades and high recoveries.
This will in turn generate more foreign currency when exported.
During the half-year under review, the group produced 564 kilogrammes of gold, which was a 4 percent decline from the same period prior year’s production of 586kg.
RioZim attributed the depressed production mainly to the rain induced power outages and plant breakdowns experienced in the first quarter of 2021 which stifled plant throughput across the group’s mines.
“Gold prices remained relatively consistent with same period prior year prices and averaged
US$1 777 per ounce, a 4 percent increase against US$1 713 per ounce. Revenue generated during the period was ZWL$2,6 billion in comparison to ZWL$616,4 million in the same period prior year.
“The marked increase in revenue was a direct result of the depreciation of the local currency against the United States dollar.
“Resultantly, the lower production achieved led to a loss of ZWL$1,5 billion compared to the same period prior year’s loss of ZWL$77,4 million.”
On its gold business, the group said at Renco Mine, the half year’s production dropped by 3 percent to 278kg from 288kg in the same period in the prior year. The reduced production is a result of lower than anticipated plant throughput arising from rain induced power outages in the first quarter.
At Dalny Mine, the operation achieved a 6 percent growth in production for the period at 105kg against the same period prior year’s production of 99kg.
“The plant capacitation initiatives implemented during the period to mitigate processing bottlenecks yielded positive results as plant throughput and overall gold production improved,” said RioZim.
On Cam and Motor Mine, the group said the mine suffered from incessant rains during the first quarter which made some of the mining areas in the mine’s open pits inaccessible resulting in the mine obtaining lower grade ores than planned.
“Cam also experienced persistent rain-induced breakdowns on its plant which also negatively affected plant throughput.
“Consequently, gold production for the period fell by 9 percent to 181kg compared to the prior period’s 199kg,” it said.
On the base metal business, RioZim said the Empress Nickel Refinery remains under care and maintenance as the company continues to explore various sources of consistent raw material supply to bring the refinery back to full capacity.
With regards to its chrome business, the mining group said litigation involving its chrome claims in Darwendale was pending in the courts.
The group however, remains committed to resuming its chrome operations after the conclusion of the court case.
On the diamond business, it indicated that RZM Murowa (Private) Limited, the group’s associate, produced 240 000 carats for the six-month period, representing a 4percent decline from the comparative period’s 250 000 carats.
The low production volumes are a result of processing low grade ore from the K2 pit throughout the period after migration of mining activities from the depleted high grade K1 pit.
Despite the reduced carats production, the associate sold more carats compared to prior year drawing from inventory, hence the share of profit from the associate rose to ZWL$252,9 million from the prior period’s share of loss of ZWL$5,3 million.
“The associate’s Crown Jewel Project which entails upscaling the plant processing capacity to sustain its operations with the low-grade ore from the K2 pit is progressing well albeit with some challenges and delays being experienced as a result of Covid-19.”
On its 178 MW proposed solar power project, RioZim said it conducted the Environmental Impact Assessments (EIAs) for all the proposed solar sites at is various mines which are a prerequisite before implementation of the solar projects.
The EIAs are expected to be concluded in the second half of the year.
On the planned 2 800MW Sengwa Power Station, it said: “As the Covid-19 pandemic continues to evolve across the world, financiers and lenders took a conservative approach making it difficult to bring financial closure for this project.
“However, engagements with potential financiers for the projects, remain alive despite the challenges and uncertainties brought about by the Covid-19 pandemic.” – The Chronicle
