Published: 07 August 2013

Zimbabwe Stock Exchange-listed mining firm, Riozim, will make annual savings of nearly US$4 million once its new oxygen plant is commissioned.

The company which is currently in the process of implementing cost reduction measures says the commissioning of the 20-tonne per day oxygen plant is set to result in monthly savings of approximately US$300 000 translating to US$3.6 million.

In its latest financial results statement, the firm says the installation of the US$1 million plant is at an advanced stage.

According to the statement, the new plant has the capacity to increase annual output to 45 000 metric tonnes per annum from the current 14 000 metric tonnes.

The group managed to record an operating profit of US$2.2 million, an increase of 47 percent from the comparative period.

While falling metal prices was a major challenge, revenue grew by 83 percent.

Despite the resurgence of the mining industry, the falling metal prices on the global market have been a major impediment to the attainment of the envisaged double digit growth rate for the sector.

Gold prices, which reached US$1 600 per ounce mark during the first half of 2012, have fallen to US$1 200 per ounce as of June 2013.

The mining sector is upbeat that the anticipated demand for metals from Asian countries such as India and China will help spur the prices of gold and platinum. 
- zbc

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