RioZim’s Cam & Motor Mine suffers low volumes due ...

RioZim’s Cam & Motor Mine suffers low volumes due to machine breakdowns

Audrey Galawu

Assistant Editor

RioZim experienced subdued production volumes for the year 2023 due to persistent plant breakdowns largely experienced at Cam & Motor Mine, which struggled with breakdowns in its milling section resulting in reduced throughput.

Cam & Motor Mine’s production was largely affected by continuous breakdowns on the milling section. Mill 2 experienced frequent down times resulting in low milling throughput.

Mill 2 was eventually suspended for major refurbishment in the fourth quarter and repair works were still ongoing as at year-end.

Production for the year was 940kg, which was a slight 1% increase from prior year production of 928kg. The subdued production volumes were due remained under full care and maintenance during the year.

The gold price maintained its growth trajectory from the beginning of the year and averaged US$1 913/oz for the year which was an 8% increase from the prior year’s average price of US$1 766/oz.

The improvement in gold production and gold prices increased the group’s revenue during the year to ZWL$216.1 billion compared to ZWL$20.6 billion achieved in the prior year.

The increase in exchange rates in the current year also contributed to the enormous increase in revenue in ZWL$ terms compared to the prior year.

Diamond production at associate RZM Murowa (Private) Limited declined by 3% to 414 000 carats compared to 426 000 carats recorded in 2022.

Mining activities from the pits remained suspended and material processed was obtained from the pre-mined low-grade tailings stockpiles.

However, the achieved grades reduced in the current year due to the inhomogeneity of the stockpiles resulting in lower carats being achieved.

The group recorded a share of loss from the associate of ZWL$5.4 billion in contrast to the share of profit of ZWL$102.1 million in the prior year due to the reduced carats in the current year.

Despite the challenging operating environment, the group’s gold production remained resilient recording a 1% growth from prior year.

“Notwithstanding the notable growth in production and favourable gold prices, the financial performance was weighed down by the macroeconomic environment which remained turbulent and challenging. The period was characterised by rising cost of production driven by inconsistent power supply and spiralling exchange rates which subsisted throughout the year.

“Resultantly, the group recorded a net loss for the year,” RioZim chairman Saleem Beebeejaun said.

Renco Mine on the other hand reinforced its “low grade-high volume” strategy in the current year, ultimately maximising its milled throughput.

“This yielded positive results as production rose by 10% to 441kg from 402kg recorded in the comparative year. The Company is focused on stabilising power supply at Renco which remains a production obstacle for the mine. In order to curb this problem, the mine continues to invest in additional generator capacity to limit the impact of power cuts on production.

“Renco Mine is also reviewing its power supply arrangements and will consider all opportunities and alternatives possible that will result in improvement in power supply to the mine.”