HARARE: Winds of change are blowing across ’s Gold mines following the relaxation of tough mining rules in the country.
In February, the country relaxed several gold mining rules, including the clause that only the central bank is entitled to buying gold in the country.
After the change in rules several gold miners have reported increased production and more and more companies are now lining up to invest in Zimbabwe’s gold mines.
Recently, gold production at Turk mine in northwest of Bulawayo in increased by more than 10% in May compared to the previous month.
The mine, owned by Japanese based New Dawn, was placed on care and maintenance due to operational challenges last year. The mine re-opened in February after the government introduced new measures that were meant to revive the sector.
New Dawn Mining group said production at the mine increased to 916 ounces in May compared to 832 ounces in April. The gold produced amounted to more than $780000 during the period.
To further advance production increases, New Dawn hired additional 17 miners at Turk Mine during May 2009, bringing the total work force to 716 miners. New Dawn is continuing to hire additional experienced and skilled miners in order to further increase gold production and output at Turk Mine.
At its peak the mine is able to processing up to 400 tonnes per day or 12,000 tonnes per month. Apart from Turkmine, New Dawn also owns additional assets that form a portfolio of exploration properties, and include the Consolidated Bubi Gold Fields, Consolidated Midlands Gold Fields and Consolidated Shurugwi Gold Fields properties, which are all based in .
Most Gold mines closed down last year due to operational problems that came about after most of them failed to access their foreign currency from the central bank.
But the government announced that it was relaxing the purchasing and marketing of gold allowing the miners to seek buyers from outside markets.
The mining companies are allowed to retain all their proceeds in foreign currency. Previously the central bank’s Fidelity Printers were the sole buyer and marketer of gold in the country.
