BMC Labour Rat

31 July 2018

Bulawayo Mining Company (Private) Limited

 Modernisation of BMC and Labour Rationalisation

Bulawayo Mining Company (Private) Limited (‘BMC’), the owner and operator of How Mine, Zimbabwe, would like to announce the modernisation and re-engineering of its operations, along with labour rationalisation.

Due to recent political changes and renewed confidence in Zimbabwe, BMC is now in a strong position to invest in its gold mining operations. BMC has a JORC-compliant resource of 1 million ounces of gold and there is potential to develop the mine into a greater volume operation.

BMC will be undergoing a significant modernisation and investment programme in order to introduce mechanisation and commence bulk mining and mining at surface. These modernisation activities will lead to a significant reduction in costs. This programme will be run by D. G. Gwatinetsa, Managing Director, alongside an experienced team at BMC, who will be engaging with all stakeholders.

Already underway at BMC is the shaft deepening, which will enable mining at depth. Hoisting capacity is to be increased to 75,000 tonnes per month (‘tpm’) and the current processing plant will be upgraded to match this hoisting capacity by 2020. In 2020 a 100,000 tpm sands processing plant will be constructed to process surface ore. Alongside these upgrades, a comprehensive underground and surface exploration drilling program will be carried out. New Tailings Storage Facilities and infrastructure upgrades will also be required.

Current planned investment for these expansion plans is approximately US$120m and this will increase annual production to 100,000 ounces. Bankable feasibility studies are currently underway.

Alongside the mine reengineering, there will a rationalisation of labour. A number of positions will be placed on shifts/short time while reviews of operations are underway. In addition, as a result of the modernisation programme and subsequent mechanisation of operations, BMC expects to reduce the number of employees. These measures have been implemented in order to reduce costs, increase productivity, and ensure the long-term viability of BMC for the benefit of all stakeholders.