Unstable power supply puts RioZim at serious risk
BUSINESS REPORTER
Listed resources firm, RioZim Limited says the erratic supply of electricity poses a significant risk to the business.
Power utility ZESA is producing about 1 000 megawatts (MW) daily against a national demand of about 1 800MW. In order to make up for the shortfall, ZESA has imposed devastating load-shedding that lasts for more than 15 hours every day in addition to importing electricity from regional power utilities.
As a result of severe power outages, RioZim has had to install expensive backup diesel generators at each of its mines.
“….The unreliable provision of power remains a significant risk to the company. It is anticipated that power challenges will be exacerbated by the onset of the rainy season expected in the last quarter of the year.
“In order to mitigate the impact of power outages, the company invested in back-up generators across its mines. However, these come with high production costs due to excessively high levels of fuel consumption,” Rio Zim company secretary Tawanda Chiurayi said.
The amount of gold produced in the quarter ending September 30, 2023, increased 13% to 307 kilograms (kg) from the comparative figure of 272 kg the previous year.
The Cam & Motor mine produced 166 kg of gold, up 14% from 146 kg during the same period last year. This increase was mostly due to an increase in milling throughput, and the crushing plant’s significant capital expenditure interventions had a positive impact on plant performance, which in turn led to the milling throughput improvement that was recorded. The Dalny mine remained under full care and maintenance throughout the quarter.
The Renco mine produced 141 kg of gold during the period under review , up 12% from the 126 kg produced during the same period in 2022. This increase in production was made possible by an improved power supply to the mine, which allowed for the upscaling of milling throughput and near-optimal plant availability.
The Empress Nickel Refinery remained under care and maintenance throughout the quarter.
Diamond production declined as a result of plant malfunctions at Murowa (Private) Limited, primarily affecting the heavy mobile equipment. These events had a detrimental impact on plant throughput.
“100 000 carats were produced in Q3, 2023; a 12% reduction from 130 000 carats produced in Q3, 2022. The mine’s key focus remains to stabilise its support equipment to enable consistent processing of high volumes as per the new 500TPH plant design,” he said.
According to Chiurayi, these renovations will lower the plant’s processing capacity because the mine will only have one mill. They are scheduled to be finished in Q4, 2023. The group has started a drive to optimize and improve processes, which will improve plant recoveries, which were muted during the quarter.
