Eureka tipped to be major gold producer

04 Oct, 2019 - 00:10 0 Views
Eureka tipped to be major gold producer According to available statistics, Zimbabwe racked in US$3,2 billion in foreign income from mining exports in 2018.

eBusiness Weekly

Ishemunyoro Chingwere

Delta Gold’s Eureka Mine near Guruve in Mashonaland Central Province, is set to become the country’s largest gold producer within the next two years if it manages to perform as envisaged by authorities.

Mines and Mining Development Minister Winston Chitando, gave targets that are set to see the mine which is currently under reconstruction following the injection of new capital by crocodile breeder and skin exporter — Padenga Holdings Limited — blossoming.

The mine is currently under reconstruction and workmen are busy refurbishing the plant and equipment as well as dewatering the open pit in order to access mining areas ahead of resumption of production that has been slated for the first quarter of 2020.   

In an interview after touring the mine with a delegation that included the Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, the Ministry’s Permanent Secretary Nick Mangwana as well as Energy and Power Development Minister Fortune Chasi, Minister Chitando said the mine has potential to contribute even more than the set target of two tonnes annually.

The delegation visited the mine on Tuesday. He said Government is also excited by the reconstruction progress being made at the mine since President Mnangagwa officiated at the ground breaking ceremony for the reconstruction of the mine last year.

The reconstruction of the project shows investors are falling in love with Zimbabwe on the back of business friendly policies by the new dispensation anchored on President Mnangagwa’s “Zimbabwe is open for business” mantra.

“We have the 2023 US$12 billion (annual export) milestone, specific for gold, we have the 100-tonne (per year) milestone in 2023.

“Part of that milestone, included in there is two tonnes (per year) from Eureka. Last year His Excellency (President Mnangagwa) came here for a ground-breaking ceremony for the construction of this mine, which obviously is a brownfield.

“We have come here to see the progress, which has been made (in construction) since His Excellency did the ground breaking ceremony and I am pleased to say the mine is well on track to achieve production by the first quota of 2021 and ramping up production to contribute more than two tonnes by 2023,” said Minister Chitando.

Production at Eureka Gold Mine was suspended more than 17 years ago at the height of investor fatigue and capital flight as businesses protested the regime’s policies.

However, the new dispensation has set itself to correct the anomaly and build an upper middle-income earning economy by 2030, which will be anchored on the strength of key sectors like mining, agriculture, tourism and the manufacturing sector among others.

Speaking at the opening of the reconstruction programme last year, the President said the reopening of the mine presents a huge opportunity.

“(The reopening of the mine) offers an opportunity for it to make its contribution to the nation’s gold output which is expected to reach 100 tonnes per annum in the next five years,” said the President then.

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