RioZim places mine under care and maintenance
RIO Zim, the Zimbabwe Stock Exchange diversified mining company has placed Danly Gold Mine under care and maintenance after it posted heavy losses in the past 18 months.
According to official documents seen by this publication, Danly, near the town of Kadoma, incurred a loss of nearly US$8 million and produced only 3 kilogrammes of gold.
According to the document, RioZim’s decision to place the company under care and maintenance is to avoid an overall negative impact on the group’s overall performance.
Most employees of Danly were transferred to other mines.
RioZim separated from Rio Tinto plc in 2004 and became a wholly owned Zimbabwean company that also holds coal and nickel assets.
RioZim, through its subsidiary, acquired Danly mine from Palatial Gold Investment around 2017. Apart from Danly, other gold assets owned by RioZim include Cam and Motor in Kadoma. The mine was once the largest producer of gold in Zimbabwe and produced in excess of 150 tonnes of gold in its entire life.
RioZim also owns Renco Gold Mine. Gold mining in the Renco area started as early as the 15th century when artisanal miners worked near surface outcrops. Impressed by the quality of the deposit, Mr Hewlett, of Coronation mine, started a minor gold rush in 1938 when he moved out to begin work on the site.
By March 1939 Rennie and Connick formed the Renco syndicate and took control of the area.-ebusinessweekly
