Mwana Africa, an African-owned and managed mining company listed in on the London Stock Exchange's Alternative Investment Market (AIM), says it is targeting increased gold output at its Freda Rebecca mine in Bindura in Zimbabwe's Mashonaland Central Province to 70,000 ounces per annum by using improved mining methods.
Gold production at the mine for the full year to March 2013 was 65,350 ounces, while for the six months to September last year, the output was 32,252 ounces.
Mwana Africa chief executive officer Kalaa Mpinga said in a statement received here over the weekend that the mine had very strong potential for further growth.
"Our priority number one is to continue delivering in cash and production; we want to ramp up our gold production to 70,000 ounces per annum which will have material impact on our cash costs," he added.
"Freda Rebecca, although it is an underground gold mine, is one of the few profitable underground gold mines in the world today, the reason being it is almost like an underground quarry, so in order to push our costs down we need to push up our volumes and this is what we are focusing on. We are focusing on increasing our mining rate, our milling rate and also seeking to improve on our recovery rate."
Mpinga said the company was also targeting to increase production at Bindura Nickel Corporation to 8,000 tonnes of concentrate per annum. Despite operating in an environment that is short of liquidity, the targets were achievable due to other enabling factors including support from the government.
"The country has over 100 years of history in mining so there is legislative framework that works very well, there is an administration that understands the needs and requirements of the mining industry and is in fact very supportive," he said.
Apart from its two mines in Zimbabwe, Mwana Africa also has operations in the Democratic Republic of Congo (DRC) and South Africa.
-- BERNAMA-NNN-NEW ZIANA