Rabat – The Moroccan mining giant Managem Group is aiming to expand the share of gold in its portfolio, from 20% to 50%, in line with growing production in its Sudan mine.
According to the company’s CEO, Imad Toumi, the expansion of the Gabgaba mine in Sudan, as well the launch of Managem’s Tri-K gold mine in Guinea later this year, are both contributing factors to the mining company’s growing gold portfolio.
While gold currently accounts for 20% of the mining giant’s turnover, Managem hopes to increase that share to 50% with the help of its Guinean and Sudanese mines.
In March, the Moroccan mining company signed a partnership agreement with the Chinese Wanbao Mining Group for the development of gold extraction projects in Sudan.
The two parties entered the partnership in order to expand the Gabgaba mine, predicting an increase of annual gold production from 60,000 to 200,000 ounces, with the estimated costs of the expansion reaching approximately $250 million (MAD 2.2 billion).
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The company’s Guinea mine, which is set to start production in the second half of 2021, will allow Managem to produce 140,000 ounces of gold annually, Toumi recently told Reuters. He also noted that the Tri-K mine has more than 1.4 million ounces of gold in its reserves.
“Managem operates a diversified and balanced portfolio including precious metals, base metals and cobalt, making the group more resilient to fluctuations in metals price,” Toumi explained.
In Morocco, meanwhile, Managem has completed a feasibility study of the Tizert copper and silver mine. The company expects extraction in Tizert to allow it to reach its annual production target of 120,000 tonnes of copper concentrate a year.
The Moroccan giant recorded an 8% revenue growth at the end of September 2020, compared to the same period of 2019. A statement by the Managem board reported that revenue stood at MAD 3.525 million ($385,000), against MAD 3.274 million ($358,000) in the previous year.