Gold miner Shamva Mine is targeting to produce 3 500 kilogrammes (kg) annually once fully developed.
Currently, Shamva Gold Mine, which was officially re-opened last year by President Emmerson Mnangagwa, is producing about 65kg a month, which translates to about 780kg a year.
Shamva is a subsidiary of Kuvimba Mining House which last year injected fresh capital into the business, after Metallon Corporation, who previously owned it, suspended operations owing to mounting debts.
Kuvimba said Shamva Mine has the potential to be one of the leading gold producers in Zimbabwe.
“The most exciting prospect lies within Shamva Gold Mine. A detailed exploration programme to delineate the resource at Shamva was concluded.
“The plan is to exploit this resource via a mega open pit mine with pre-feasibility study which was conducted indicating a viable large scale long life line.
“Once fully developed, Shamva Gold Mine has the potential to become the largest gold mine in Zimbabwe by output and will target an annual production of 3 500kg of gold per annum,” Kuvimba said.
Government controls about 65% shareholding in Kuvimba while local and international investors hold the remainder.
The government shareholding has been structured in a way that benefits special interest groups identified by the government.
These include the Sovereign Wealth Fund of Zimbabwe, a statutory fund which is now being fully implemented for the future benefit of the Zimbabwean citizenry and the pensioners.
The Insurance and Pensions Commission holds a 5% stake in Kuvimba.
The Deposit Protection Corporations also holds 5% shareholding in Kuvimba while about 7% shares are held by the Public Service Pension Management Fund.
The National Venture Funds holds 7.5% shareholding in the company.
The balance is held by private sector investors including management.
Mines and Mining Development Minister, Winston Chitando (pictured) said Shamva Gold Mine is expected to be one of the main drivers in Zimbabwe’s goal to achieve
a US$12bn mining economy by the year 2023.
With the opening of a new mine in the first quarter of 2023, Shamva is expected to contribute 5% of the US$12bn mining industry vision as the government is banking on mining and agriculture as providing impetus to stimulate economic resuscitation.