South Africa’s Pan African Resources plans to start gold mining in Mozambique in 2012

19 August 2010

Johannesburg, South Africa, 19 Aug – South African mining company Pan African resources, which has projects in both South Africa and Mozambique, plans to start mining for gold in central Mozambique in 2012, the company’s chief executive said in Johannesburg Wednesday.

Jan Nelson said that initial analysis of the location in Manic province, near the Mozambican border with Zimbabwe, had been concluded, and the company was currently concluding its economic feasibility study, which would be sent to the Mozambican government in the next three months.

After being granted the mining license, said Nelson, operations at the mine would likely begin within 15 months.

According to information provided on its website, Pan African Resources has so far invested 135 million rand (US$18 million) in the Manica project over the last four years.

Nelson said Wednesday that the company would mine 30,000 ounces (around 933 kilos) of gold per year and that operations would begin with an open-faced mine some 40 metre deep.

The chief executive of Pan African Resources also said that its was not a given that the company would build a gold refinery in the location, which contradicts what the Mozambican authorities have said.

Speaking to Mozambican newspaper Notícias the Mozambican minister of Mining Resources, Esperança Bias, said that the gold foundry would cost 600 million rand (US$80 million) and that it would initially employ 300 people. (macauhub)

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