Mwana Africa to re-open Zimbabwean gold mine

Zimbabwean gold mine, Freda Rebecca, is to re-open.

The mine is owned by Mwana Africa, a London-listed company, having been acquired from AngloGold Ashanti in 2005.

Freda Rebecca was placed on care-and-maintenance in 2006 and the decision to re-open follows changes in Zimbabwe’s export procedures, allowing companies to operate in foreign currency accounts.

Gold miners are now entitled to receive a price for the metal based on the international market and the requirement for a percentage of foreign currency revenues to be converted into Zimbabwean dollars has ceased, removing the problems created by the country’s staggeringly high inflation rate.

Mwana Africa has invested around $7 million in the mine since it assumed ownership and the initial cost of resuming production is estimated at $6 million.

Gold production at Freda Rebecca stood at 22,000 oz in 2005 and on acquiring the mine, Mwana announced plans to boost production by doubling tonnage processed to 55,000 tonnes per month and increasing the rate of gold production to 48,000 oz per year.

Production should recommence in the next four to six months.