GOLD SECTOR ENQUIRY: Mines Portfolio Committee visits Eldorado mine
Edmond Mkaratigwa led Portfolio Committee on Mines and Mining Development today began an enquiry into the gold mining sector for the year 2022.
The committee visited Chinhoyi based Eldorado mine currently owned by three Chinese shareholders were committee members experienced first hand operations at the gold mine.
According to the Eldorado Mine Manager Mr Abraham Nyamwela the gold mine employs 330 people from the surrounding areas. The mine currently produces 18kgs of gold per month. The mine had a slow start due to the scrounge of illegal mines a problem that was eliminated by the Police and sealing of an opening the illegals frequented.
“It’s a good mine playing its part to meet the country’s vision 2023 of a 12 billion dollar industry. We had a challenge of illegal miners who would go underground and start working illegally. The far western side had an opening that we have closed as production was being disrupted by the illegal miners. We are thankful to the ZRP who assisted in getting rid of illegal miners. I joined the mine in March 2021 and managed to up production to 18kg from 2kg monthly,”. Nyamwela said.
Currently the mine is working on expansion projects and a timber shaft has been sunk to 20metres. When completed the expansion project is forecasted to double production.
Investment and Production
According to Eldorado approximately 13 million has been invested in the project. A total of 7000 tonnes of ore is produced per month. The Mill has a capacity of processing 300 tonnes monthly.
The mine shaft is currently at 8 level (280metres) and the width of orebody is 30 metres. It currently makes use of two separate processing plants.
“We are currently using two separate processing plants to ensure continuation in case of breakdown,” Nyamwela said.
Current life of Mine is pegged at two years.
Historically the Mine used to get 1kg per tonne of ore a figure that has dismally dropped to 2 grammes per tonne. The mine has free gold (uncombined with other minerals, found in a pure state) of 50%.
Seven University of Zimbabwe Mining Engineers are currently being trained at the mine
Wages
Portfolio Committee member Hon Elias Musakwa queried on the minimum wage to which the HR Manager elaborated.
“The minimum wage is currently at US$190 /month +19000 rtgs and our total wage bill is around US$110 000. The total cost of running the mine is 600 000,” he said.
Hon Msakwa expressed concern that the mine pays only 8% of the total earnings per month in wages.
The committee also questioned why there where temporary structures at a mine that seemed to be on an upward trajectory and has been working without disruptions for over a year. Manager said plans are in place to build permanent structures.
“The Mine started operating properly recently. We do have plans for permanent structures,” Nyamwela said.
Contrary to what Nyamwela said, one of the Mine owners however added her voice saying their focus is on more on production than infrastructure.
The response did not sit well with Committee members.
Women
Hon Masara asked how many women the mine employed. The manager confirmed the mine employed only two women who were in managerial positions.
“Only two women are employed and are at managerial positions. Most of the work available is too manual women will not be able to handle it,” Nyamwela said.
Reclamation
Hon Cecil Kashiri asked what was the mine’s environment reclamation plan to which EMA officials who were in attendance responded that the mine followed all protocols and it approved dump reclamation. The mine’s EIA certificate if currently up to date.
Staff Accommodation
The Mine does not have accommodation facilities for its workers or Management. Management reported they stayed in Chinhoyi suburbs, and the workers stay in nearby farms. Management receives a monthly housing allowance which general workers do not.
Health and safety
The mine does not have any health facilities and according to the Manager it rushes injured workers to Chinhoyi hospital which is a few kilometres away. The mine also has a Chinese trained Medical doctor who is also based at the at the site.
Corporate Social Responsibility
The mine is currently building two school blocks at Hunyani primary school. They have also sunk a borehole as part of their corporate social responsibility. However the Mine admitted that the mine doesn’t have a mine policy.