Kuvimba Mining House’s subsidiary in record gold production

KUVIMBA Mining House’s (KMH) subsidiary, Fredda Rebecca produced 300 kilogrammes of gold in a month, a record which has made the company the largest gold production in the country.

KMH owns and manages three operating gold mines, three non-operating gold mines, various chrome operations, an operating nickel mine as well as an investment in a platinum project.

This comes as rising metals prices are attracting investors into mineral extraction to generate the much-needed foreign currency in the country.

Fredda Rebecca managing director, Eliakem Hove attributed the record-breaking production to investment and good operating environment.

“We recorded 294,8kg against a plan of 244kg compared to last year where we were averaging 226kg a month. It is a combination of two factors such as the re-investment into the business by our shareholder which we enabled us to recapitalise and teamwork from management. Our plan now is to keep the momentum for the next five years,” he said.

KMH took over the ownership and management of several mining assets in Zimbabwe during the second half of CY2020.

Cobus Bronn, chief operating officer for KMH said since its inception, KMH has seen the performance of the underlying mining assets improve significantly. In addition, KMH has developed a clear vision underpinned by a value system to ensure an appropriate execution of its growth strategy for the company.

“KMH’s vision is to create sustainable growth for Zimbabweans through safe and responsible mining. This vision is achieved by instilling the following core values namely, integrity, being a good corporate citizen, care and respect, accountability and fostering good teamwork,” he said.

KMH owns and manages three operating gold mines, three non-operating gold mines, various chrome operations, an operating nickel mine as well as an investment in a platinum project.

“The KMH strategy has followed an initial phase of stabilizing the operations, a secondary phase of increasing metal output from current operations and the third phase is to operationalize the current non-operating asset. Phase one has largely been completed and this was achieved through the reinvestment of capital in the operations, management reorganization and providing a fresh look at the various operations,” said Bronn.

Gold gained about 25 percent in 2020 as global central banks and governments delivered economic stimulus, laying the ground for higher inflation and currency debasement.

The record breaking gold production at Fredda Rebecca is testimony that KMH is emerging as a mining giant less than a year after its establishment.

Kuvimba was established last year and is 65 percent owned by the government with the balance held by management through a Mauritius-based company Quorus.

Before the takeover, Fredda Rebecca was producing 150 kilogrammes of the yellow metal and the 300 kilogrammes the first time for the mine in 20 years.

Kuvimba is targeting to do one tonne of gold monthly in the next three years which will be complement by Shamva Gold mine which is on course to reach 400 kilogrammes monthly by December 2022.

KMH shareholding

The government of Zimbabwe control 65 percent of Kuvimba Mining House, broken down as 12,5 percent for Deed of settlement to white farmers, 7,5 percent for Venture fund with 2,5 percent for youths, 2,5 percent as Women fund, 2,5 percent for War Veterans, 5 percent for legacy pension (compensate pensions which were eroded by devaluation), 5 percent for the deposit protection fund, 7 percent for government pension fund (all government employees) and 6.5 percent for Sovereign wealth Fund.

The other 35 percent is for private sector which includes management.

Bindura Nickel Corporation, Shamva Gold Mine, Jena Mine, Elvington Mine, Zim Alloys, Greak Dyke Investments are part of the Kuvimba Mining House and its gold sector employs 4000 people.  Jena mine is on target to produce 75kilogrammes a month by December 2021 from the current 25kilogrammes and when Kuvimba took over it was producing 7kilogrammes bringing life to Jena community. 

Besides gold mining ventures, Bindura Nickel Corporation (BNC) has finished re-deep process to extend the mine life for seven years though another re-deep process is expected soon. The nickel venture employs one thousand people.