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Oliver Kazunga Senior Business Reporter
OPERATIONS at the $4.15 million RHA tungsten mining project in Matabeleland North province are expected to start in June.

Indications are that production at RHA Tungsten Mine would begin in June this year while the plant for the new mine, which is being manufactured in Johannesburg, South Africa, is due for shipment into Zimbabwe in May, according to miningweekly, a South African online mining publication.

Premier holds 49 percent of RHA Tungsten (Pvt) Limited with the remaining 51 percent held by the National Indigenisation and Economic Empowerment Board.

Located 20 kilometres south-east of Hwange, the mine will rail its concentrate to a choice of ports at rates, which Premier chairman and chief executive officer George Roach described as competitive and the concentrate will not be subject to the latest 15 percent export levy.

RHA holds 50 mineral claim blocks, where historic mine workings in the form of trenches, pits, pegs and shafts are evident.

Open cast mining is envisaged for 22 months, with revenue from the open pit expected to repay debt currently being raised as well as open the way for the development of an underground mine, with an eight-year life-of-mine based on measured and indicated resources.

The company targets a compliant indicated resource of up to 10 million tonnes at a grade of 0.12 percent to 0.17 percent tungsten trioxide (WO3) and 86,000 tonnes at 2.25 percent.

Last October, the AIM-listed company provided details of the start-up strategy, which had set out an initial estimated preproduction capital requirement of $4.8 million.

“The report confirms our strategy for RHA and supports our conclusions that the open pit is projected to generate sufficient surplus cash to allow for the start of repayment of loans to be made to RHA by Premier, and to finance the build of the underground operations,” Roach was quoted as saying.