HomeGoldPan African to mine gold in Mozambique

Pan African to mine gold in Mozambique

Pan African
Resources managing
director Jan Nelson
Johannesburg, South Africa — MININGREVIEW.COM — 18 August 2010 – South African mining company Pan African Resources “’ which has projects in South Africa and Mozambique “’ plans to mine gold in central Mozambique by 2012.

Revealing this here, managing director Jan Nelson said exploration had been completed on a site in Manica province, close to Mozambique’s border with Zimbabwe and the border town of Mutare.
“We are busy completing a definitive feasibility study,” he said, adding: “In three months the study will be presented to government.”

The mine should start operating around 15 months after the mining licence was granted, Nelson said, but he emphasised that the company first had to engage with government, who first had to give the okay.”

According to its website, PAF has spent US$18 million (R135 million) on exploration in Manica province over the past four years. The company plans to mine 30000 ounces of gold a year from 410 000tpa of ore.  “Our plan is to start with an open pit at a depth of 40m,” he said.

Nelson added that it was not yet certain whether a new gold refinery would have to be built to refine the ore. This contradicted announcements by Mozambican mining authorities, which had claimed that PAF would build a refinery due to start operating before the end of the year.

The refinery would cost US$80 million (R600 million) and would initially employ 300 workers, Mozambiquan mineral resources minister Esperanca Bias reportedly told the state newspaper Noticias.

“We will not build a refinery,” said Nelson. “There is a refinery, but we need to test whether it can handle the quantity of gold to be mined.”