Blanket Mine expansion boost output, create employ...

Blanket Mine expansion boost output, create employment

Zim Now Writer

Several locals are expected to benefit from employment opportunities presented the new US$67 million Central Shaft at the Victoria Falls Stock Exchange-listed Caledonia Mining Corporation Plc-owned Blanket Mine near Gwanda.

The Central Shaft, which goes 1 200 metres below the surface, making Blanket one of the deepest mines in the country, was commissioned yesterday by President Emmerson Mnangagwa.

Speaking at the commissioning of the Central Shaft, Mnangagwa said that the country must invest in value adding processes that will improve the gains that accrue from the country’s resources.

“We cannot as a country continue to be exporting primary products, including concentrates and ores. Our people must fully enjoy the benefits of ‘moving up the value chains’,” he said.

The expansion of the mine, which lies 15km west of Gwanda, in Matabeleland South Province, is expected to boost output levels four times higher than 2009 levels.

It is envisioned that the expansion will also create employment, with levels rising from around 500 to above 1 600 workers.

Back in August 2015, Caledonia announced the construction of a new central shaft at Blanket Mine, going down to 1 200 metres from the surface, providing access for horizontal development in two directions on two levels below 750m.

This was expected to increase production to 80 000 ounces from 2022, extending the life of the mine. Revenue has increased from US$123 million per annum to more than US$148 million per annum

Caledonia chief executive officer, Mark Learmonth, said the opening of the Central Shaft Project was a major milestone in the mining firm’s journey, adding that the Group was focused on expanding its footprint through the acquisition of more assets as well as diversification of its operations.

A wholly-owned subsidiary of Caledonia Mining Corporation completed the purchase of the Blanket Mine from Kinross on April 1, 2006.

Caledonia has allowed Blanket to make considerable capital investments in its underground, surface and township facilities, which culminated in the commissioning of the No 4 Shaft Expansion Project at the end of September 2010, increasing Blanket’s hoisting capacity from the No. 4 Shaft from 500 to 3 000 tonnes per day.

Less than a week ago, Caledonia brought its new 12.2 MWac solar power plant at its Blanket Mine near Gwanda on stream, providing about 27 percent of the mine’s average daily electricity demand.

The solar plant was also commissioned by Mnangagwa yesterday.

The solar power plant was expected to augment power supplies at the mine as intermittent supplies from power utility Zesa Holdings presented safety and economic implications for the gold miner during outages.

Standby diesel generators that were brought in to facilitate uninterrupted mining and capital operations provided expensive electricity and an unfavourable environmental footprint.