Mwana Africa shares plunge on tank rupture at Zimbabwe gold mine

Mwana Africa shares tumbled Friday after the company said it halted production at its Freda Rebecca gold mine in Zimbabwe following a rupture in a leach tank.

Mwana Africa shares tumbled Friday after the company said it halted production at its Freda Rebecca gold mine in Zimbabwe following a rupture in a leach tank.

Shares plunged 8.43% to 5.70p after the mining firm announced it suspended plant processing to address the incident.

A leach tank collapsed onto a second, causing structural damage to the two and a spillage of contents onto the ground beyond the bunded containment area.

Five employees were affected by the incident, including one who suffered a fractured ankle. They are in a stable condition and have been kept in hospital as a precaution.

The company said it expected the incident will in the short term affect production volumes and in the medium term affect gold recovery.

Mwana was confident production will commence in the next four days.

Chief Executive Officer, Kalaa Mpinga, said: We will put in place the appropriate measures to contain any impact on the affected area as soon as possible while investigating the cause of the collapse to prevent any future reoccurrence."

The group has received permission from the Mine Inspectorate and the Environmental Management Authority to commence site restoration which will be focused on making the area safe and assessing damage caused to resume operations.

RD

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