GOLD mining firm, New Dawn Corporation says production for the first quarter jumped nearly 5 percent with revenues increasing to US$3.8 million despite a number of challenges that included power supply interruptions.
The company, which operates the Turk and Angelus gold mine, said 3396 ounces of gold were produced in the three months to March 31 adding this was 4.8 percent higher than total production for the quarter ended December 31, 2009.
“This production increase was achieved despite the negative effects of an increasing number of unscheduled power cuts during the most recent quarter.
“In the near term, power supply uncertainties may cause gold production output to vary monthly until power supply levels become more normalized and reliable,” the company said in a statement.
The company also expressed concern over government’s decision to increase a minerals royalty levy of 3 percent imposed in August 2009 to 3.5% effective January this year saying this would increase operating costs.
“With the recently completed deepening of the Armenian shaft at the Turk Mine and previously announced plans to install diesel generators for back-up power, New Dawn remains ahead of schedule in its plan to progressively increase annualized gold production at the mine to an anticipated rate of approximately 22,000 to 23,000 ounces of gold by mid-2011,” the statement added.
Meanwhile, New Dawn, which employs up to 950 workers, said it has also been affected by the ongoing strike in the country’s mining sector.
The Associated Mine Workers Union of Zimbabwe called a general strike last Wednesday, demanding a minimum monthly salary of US$290 for the lowest paid workers who are currently earning US$140 per month.
The job action threatens to undermine the efforts to revive the country’s mining sector which was beginning to recover from years of decline.