Politics and policy Goldplat plans shift of Ghana gold plant to Trans Mara site Share Bookmark Print Rating A piece of rock with gold at Macalder in Migori. The Kilimapesa mine in Trans Mara was estimated to have capacity to process 5,000 ounces of gold annually. PHOTO | FILE A piece of rock with gold at Macalder in Migori. The Kilimapesa mine in Trans Mara was estimated to have capacity to process 5,000 ounces of gold annually. PHOTO | FILE By ALLAN ODHIAMBO Posted Monday, September 28 2015 at 18:09 In Summary Goldplat says de-construction of the processing plant in Ghana and its relocation to Kenya in Kilimapesa, Trans Mara, has started in plans to expand its gold prospecting business. London-listed miner Goldplat plans to relocate a gold processing plant from a site in Ghana to south western Kenya where it targets to double production in 2016. SHARE THIS STORY Tweet 0 inShare Company chairman Brian Moritz said de-construction of the processing plant in Ghana and its relocation to Kenya in Kilimapesa, Trans Mara, has started in plans to expand its gold prospecting business. “The aim would be to double production to around 6,000 ounces per annum with ore being processed through a new gold plant. With access to capital for the proposed project constrained and the GRG CIL Gold Recovery Ghana Limited (GRG) Carbon-in-leach (CIL) plant becoming available, an interim step is likely to be the moving of this CIL plant to the site in Kenya,” he said on Monday. Goldplat currently mines gold ore from the Kilimapesa Hill area with additional material being sourced from artisanal tailings within the block. The company also has assets in South Africa and Burkina Faso. The firm’s gold production in the year to June was 2,278 ounces, up from 1,163 ounces in 2014 with a total 919 ounces being sold last year. Earnings from gold slumped to Sh695.3 million last year from Sh7.4 billion in 2013 and Sh13.9 billion in 2012, hurt by low global prices that discouraged miners. READ: Goldplat plans acquisition to revive western Kenya mine The 919 ounces is currently valued at Sh110 million based on the price of $1,142.40 an ounce —which was below $1,000 in July. It stood at $1,766 in August 2011. Kenya awarded its first ever gold-mining licence in late 2011 to Goldplat Plc, which began mining at Kilimapesa in Migori in January 2012, pouring the first bar of gold ever produced in the country. But the weaker gold price and uncertainty over a proposed mining law that forces foreign-owned firms to cede 35 per cent of their mining operations to Kenyans dimmed its outlook, pushing management to restrict operations in June 2013. Though set for repeal under the Mining Bill 2015, the ownership remains gazetted. “Kilimapesa is currently producing at a rate of around 2,700 ounces of gold per annum and is working towards operational break-even,” Mr Moritz said. The Africa-focused miner said in April it is targeting an acquisition to help expand its Kenyan operations near Lolgorien in Trans Mara.

Politics and policy

A piece of rock with gold at Macalder in Migori. The Kilimapesa mine in Trans Mara was estimated to have capacity to process 5,000 ounces of gold annually. PHOTO | FILE 

By ALLAN ODHIAMBO

In Summary

• Goldplat says de-construction of the processing plant in Ghana and its relocation to Kenya in Kilimapesa, Trans Mara, has started in plans to expand its gold prospecting business.

London-listed miner Goldplat plans to relocate a gold processing plant from a site in Ghana to south western Kenya where it targets to double production in 2016.

Company chairman Brian Moritz said de-construction of the processing plant in Ghana and its relocation to Kenya in Kilimapesa, Trans Mara, has started in plans to expand its gold prospecting business.

“The aim would be to double production to around 6,000 ounces per annum with ore being processed through a new gold plant. With access to capital for the proposed project constrained and the GRG CIL Gold Recovery Ghana Limited (GRG) Carbon-in-leach (CIL) plant becoming available, an interim step is likely to be the moving of this CIL plant to the site in Kenya,” he said on Monday.

Goldplat currently mines gold ore from the Kilimapesa Hill area with additional material being sourced from artisanal tailings within the block. The company also has assets in South Africa and Burkina Faso.

The firm’s gold production in the year to June was 2,278 ounces, up from 1,163 ounces in 2014 with a total 919 ounces being sold last year.

Earnings from gold slumped to Sh695.3 million last year from Sh7.4 billion in 2013 and Sh13.9 billion in 2012, hurt by low global prices that discouraged miners.

READ: Goldplat plans acquisition to revive western Kenya mine

The 919 ounces is currently valued at Sh110 million based on the price of $1,142.40 an ounce —which was below $1,000 in July. It stood at $1,766 in August 2011.

Kenya awarded its first ever gold-mining licence in late 2011 to Goldplat Plc, which began mining at Kilimapesa in Migori in January 2012, pouring the first bar of gold ever produced in the country.

But the weaker gold price and uncertainty over a proposed mining law that forces foreign-owned firms to cede 35 per cent of their mining operations to Kenyans dimmed its outlook, pushing management to restrict operations in June 2013.

Though set for repeal under the Mining Bill 2015, the ownership remains gazetted.

“Kilimapesa is currently producing at a rate of around 2,700 ounces of gold per annum and is working towards operational break-even,” Mr Moritz said.

The Africa-focused miner said in April it is targeting an acquisition to help expand its Kenyan operations near Lolgorien in Trans Mara.