Murowa diamond output falls 28pc
Diamond output at Murowa, an associate of RioZim Ltd, registered a 28 percent decline to 414 000 carats in the year to December 31, 2021.
The dip in output at Murowa was attributed largely to the processing of material from low grade stockpiles, with limited mining from the operation’s K2 pit. In a statement accompanying the group’s financials for the period under review, said: “Diamond production for the group’s associate, RZM Murowa (Private) Limited, declined by 28 percent to 414 000 carats from 579 000 carats produced in the comparative year, 2020.
“The associate processed material from the low grade stock piles with limited mining activities from the K2 pit. This was in contrast to the prior year whereby production was from the mining activities in the K2 pit, which has slightly better grades.”
The mining group said the key focus for the associate was completion of the Project Crown Jewel, which entails increasing the existing processing plant capacity to move to a ‘low grade high volume’ strategy in order to sustain production.This is against a backdrop of low grades being processed presently.
During the year under review, the group’s share of profit from the associate increased to $525,8million compared to $494,8 million in the prior year.
On the group’s gold business, RioZim said production also regressed reflecting a 7 percent dip from 1 205kg produced in the prior year to 1 122kg.
“Due to delays in the completion of the BIOX Plant Project, the lifespan of the stopgap One-Step mining operation was extended and continued to supply ore to the Cam & Motor plant.
“The grades, however, significantly dropped which resulted in subdued production.
“This impacted the group’s production as both Dalny and Renco recorded almost consistent production from the prior year.”
The gold price recorded a marginal 1 percent increase from the prior year to an average of US$1 774 per ounce for the year compared to US$1 765/oz in the prior year.
“Despite a 7 percent decline in gold production, the group’s revenue increased by 84 percent to $5,8 billion compared to the prior period’s $3,1 billion primarily due to the depreciation of the local currency against the United States dollar.
“The mine operated at almost the same level of production as the prior year, achieving 561kg of gold, 3 percent lower than 580kg produced in the prior year,” it said.
The slight shortfall in gold output from the prior year was attributed to reduced plant throughput as a result of increased power cuts during the year.
At Dalny, the mine achieved a 6 percent growth in gold production, achieving 209kg of gold from 198kg produced in the prior year.
The growth in gold production was due to increased plant throughput as plant improvements carried out during the year under review successfully stabilised the plant. At One-Step Mine, gold production fell by 18 percent from the prior year’s production of 427kg to 351kg.
The low gold output was attributable to lower grades which dropped from the prior year.
“The life of mine was extended during the year despite the grades deteriorating and mining operations continued for the full year.”
The One-Step ore was processed at the plant in Cam & Motor as had been happening in the previous year.
The group said at its Cam & Motor Mine, there was no gold production and this was a carry forward from prior year as the mine continued with the construction of its BIOX plant project throughout 2021.
President Mnangagwa last month commissioned the project whose completion missed the 2021 second half deadline due to inadequate foreign currency and Covid-19 pandemic induced challenges.
Commissioning of the BIOX plant project would have enabled resumption of mining operations at the Cam & Motor high grade ore pits.
RioZim’s base metal refinery during the financial year under review operated under care and maintenance throughout the period with 210 tonnes of matte, 78 tonnes of Platinum Group Metals and 21 tonnes of copper were produced.
Revenue of $381 million was generated during the year from the projects at the refinery which partially funded the care and maintenance costs.
The group continues to engage various stakeholders to identify sources of raw material to feed the refinery to normal production capacity.
Regarding RioZim’s chrome business, it said, “The legal dispute relating to the company’s chrome claims in Darwendale remained under litigation as at year end and the company continues to pursue the finalisation of the court case.”
On the 178 MW Solar Project, RioZim concluded Environmental Impact Assessments (EIAs) for all the proposed solar sites which are a prerequisite before the implementation of the solar projects at the various mines.
Engagements with potential financiers are ongoing although at a slower pace due to the
complexities brought about by the Covid-19 pandemic.
And on the 2 800MW Sengwa Power Station, the group said due to a mix of considerations brought about by the pandemic, RioZim has put up various financing options to attract potential investors into the project.-The Herald
