JOHANNESBURG (miningweekly.com) – London-listed Mwana Africa plans to restart its Freda Rebecca gold mine, in Zimbabwe, after the country revised export procedures and the metal’s price strengthened.

Mwana Africa plans to have the mine, which it bought from South Africa’s AngloGold Ashanti in 2005, back in production in the next four to six months.

The company announced on Wednesday that it had appointed consultants to plan and evaluate a ramp-up programme for the plant.

Since acquiring Freda Rebecca, Mwana Africa had invested $7-million at the mine, and a further $6-million would be needed to bring the first phase of the plant back into production.

The mine was placed on care-and-maintenance in 2006, due to operating difficulties. In 2002, it produced 98 000 oz.

The decision to reopen Freda Rebecca came after Zimbabwe announced revised export procedures, and allowed companies to operate in foreign currency accounts.

The Reserve Bank of Zimbabwe (RBZ) has removed its historical surrender requirements, and now allows gold producers to make arrangements for the refining and sale of gold, and entitles miners to receive a price based on that prevailing in the international market for bullion.

The government also announced in the March 18 Budget that it had terminated the requirement to submit a proportion of foreign currency earnings to the RBZ for conversion to Zimbabwe dollars.

“We are pleased that the improved business environment in Zimbabwe allows us to implement a programme to restart gold production at a time when the gold price is strong and when gold supply is constrained,” commented CEO Kalaa Mpinga.

Mwana Africa owns 100% of the mine, and has committed to sell a 15% stake to a local investor.

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