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RioZim needs about $2.,1 billion to build power plants that would produce up to 1,400 megawatts of electricity. — (Picture RioZim)

Mining firm, RioZim says it is planning to set up a processing plant for its newly re-opened Cam and Motor gold mine this year at a cost of $10 million.The Cam and Motor gold mine, situated near Kadoma, was shut down nearly 50 years ago due to viability challenges.

The mine, once the country’s biggest, was shut down after having produced only 150 tonnes of gold.

In emailed responses, RioZim chief executive officer Noah Matimba said the mine, which resumed operations in April this year, was currently utilising another mine’s processing plant.

“We’re scheduled to build our own plant during the year 2015 at a cost of $10 million,” he said.

“Our own plant will be commissioned in 2016.”

RioZim has said that the Cam and Motor mine, which was once an underground mine but is now an open cast operation, was targeting to produce 1,700 ounces of gold per month.

To reduce costs of reviving the mine, RioZim is utilising contract mining companies to drill, blast and haul the ore to the processing plant.

Zimbabwe’s gold production has been on a steady increase since 2010 due to a number of initiatives and support systems put in place by the government to ramp up gold output.

For example, government has set up service centres in small-scale mining areas which offer various services such as gold milling and also act as collection points for the yellow metal.

The government has also directed that all gold produced in Zimbabwe be sold to Fidelity Printers and Refineries, to curb leakages.

Gold remains one of Zimbabwe’s major foreign currency earners in the mining sector. – New Ziana.