COMPANIES
SA group buys Zim gold mine
Posted Tue, 19 Jul 2005
Mmakau Mining, headed by transport minister Jeff Radebe's wife
Bridgette, has bought a gold mine in Zimbabwe, the company
announced on Monday.
Mmakau Mining would hold a 75 percent equity interest in Eureka Gold
Mine, in Zimbabwe, acquired for $4.5-million (R30-million).
The 25 percent balance, at a cost of $1.5-million, would be held by Shaft
Sinkers, Mmakau's consortium partner in the deal with Placer Dome
South Africa.
The agreement provided for Mmakau Mining and Shaft Sinkers to
include a Zimbabwean black economic empowerment entity.
"We are confident that our consortium will provide the necessary
expertise, support and infrastructure to successfully operate the
mine," Radebe said in a statement.
"Our nine years of experience in Zimbabwe and our continued
commitment to indigenous equity and rural renewal programmes in
that country also stands us in good stead," she said.
Voicing the company's excitement at the purchase and
the
"opportunity to add a gold asset to our portfolio", Radebe said it
enabled the firm to expand beyond the borders of South Africa into
the New Partnership for Africa's Development (Nepad).
Situated 150 kilometres north of Harare, Eureka Gold Mine was
acquired by Placer Dome through the AurionGold transaction in 2002.
Studies had confirmed the mine contained gold reserves in
excess of 250 000 ounces, with an expected peak production of
60 000 ounces a year from its open pit and heap leach operations.
Ore body outcrops on the surface extended to a depth of at least
800 metres, the consortium said.
It intended developing an underground mining operation that
would include sinking a vertical shaft and introducing milling to
the metallurgical plant process, said Shaft Sinkers chief executive
officer, Peet Nel.
Sapa
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