KMH Eyes Investment to Revive Shamva Mine

Bindura, Mashonaland Central News – Kuvimba Mining House (KMH), Zimbabwe’s state-owned mining giant, is seeking a $150 million investment to expand operations at its Shamva Gold Mine, a move that could significantly boost the Mashonaland Central economy and that of the country.

This ambitious endeavour comes as a ray of hope for the Mashonaland Central region, particularly after the neighbouring Bindura Nickel Corporation (BNC) was placed under administration due to financial difficulties. The potential expansion of Shamva Gold Mine promises not only increased production but also job creation and economic growth for the surrounding communities.

“We could accept someone who could take a big chunk of shareholding in Shamva but not a majority stake,” Freda Rebecca Gold Mines’s Managing Director, Patrick Maseva-Shayawabaya, told journalists during a recent tour of the Freda Rebecca Gold Mine in Bindura.

KMH is considering selling a 40% stake in Shamva Gold Mine to attract investors. The funds would be used to develop a large-scale open-cast mine and build a new processing plant. This expansion is projected to increase gold production at Shamva by 50%, a substantial boost that could generate significant revenue for the region and the nation.

“This is a resource which is really significant, it’s large, it’s high quality,” said Kuvimba’s acting CEO, Trevor Barnard, during the tour. “We are discussing that with potential partners to go forward.”

Enhancing Accountability and Transparency

To attract potential investors, KMH has implemented a gold traceability system developed by Comstack. “It enhances our gold traceability system from the mine to the market,” Barnard explained. “It is important we have regulatory compliance, not only within Zimbabwe but also internationally.”

This focus on transparency and accountability is crucial in the mining sector, especially as Zimbabwe’s government seeks to strengthen its gold reserves and support the new ZiG currency, which is backed by gold.

Going Green at Freda Rebecca Gold Mine

Meanwhile, at Freda Rebecca Gold Mine, KMH is making strides towards sustainability. The company plans to address the mine’s intermittent power supply issues by building a seven-kilometre power line to connect with the more reliable Trojan power line.

Additionally, KMH is exploring the development of a solar plant to provide about 30% of the mine’s power needs. “The plan that we have got is that, rather than investing directly ourselves in solar, we have entered into an off-take agreement with an investor,” said Patrick Maseva-Shayawabaya, FRGM’s Managing Director.

The revitalization of Shamva Gold Mine and the ongoing development at Freda Rebecca Gold Mine are expected to create jobs, stimulate local economies, and contribute to Zimbabwe’s overall economic recovery.

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