May 17, 2020

The journey begins: Construction commences on Nord Gold Russian Gross mine

Nord Gold
Gross Mine
Russian Gold Mining
Nikolai Zelenski
Dale Benton
1 min
The journey begins: Construction commences on Nord Gold Russian Gross mine
Nord Gold, the internationally recognised low cost gold producer, has announced that it has started work on it's open-pit heapGross Mine, in Yakutia...

Nord Gold, the internationally recognised low cost gold producer, has announced that it has started work on it's open-pit heap Gross Mine, in Yakutia, Russia.

The mine is part of the Gross project, an extensive exploration programme that has uncovered proven and provable Gold of up to 4.4 moz as of December 2015. The mine is expected to produce up 230 ounces of gold per year, with the first gold earmarked for 2018.

Nikolai Zelenski, CEO of Nordgold, said: "Gross is a financially compelling, high-return project that has been significantly de-risked through an extensive feasibility study and two-year pilot-testing phase, giving us confidence in our ability to deliver the project at a modest capital cost.

“We fully expect construction at Gross to be completed on schedule and within budget. All of our development projects are very capital efficient, competitively positioned at the low end of the cost curve and we expect to generate robust returns for Nordgold shareholders.”

The Gross mine will provide up to 350 construction jobs and 800 permanent mining jobs over its 17 year mine life.

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Dec 16, 2020

Zimbabwe targets £8.8bn mining industry by 2023

Zimbabwe
exploration
Gold
Dominic Ellis
3 min
Government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas
Government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas...

Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.

Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented. 

Mutsvangwa was speaking at a post-cabinet media briefing on December 15.

She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.

For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.

Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.

The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.

Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.

When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.

He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.

Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said. 

Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.

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