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Metallon Corporation sitting on 7.9 million ounces of gold reserves

Business Reporter

ZIMBABWE’S largest gold producer, Metallon Corporation has revealed it is sitting on a significant amount of gold in its four subsidiaries.

The mining giant is holding company to Gold Fields of Shamva (Private) Limited, Gold Fields of Mazowe (Private) Limited, King’s Daughter Mining Company (Private) Limited (‘KDMC’), owner and operator of Redwing Mine and Bulawayo Mining Company (Private) Limited (‘BMC), owner and operator of How Mine.

Redwing Mine has a JORC-compliant resource of 2.6 million ounces of gold, Shamva Mine 2.5 million, Mazowe Mine 1.8 million, and How Mine at one million ounces of gold. All the mines have potential to develop into greater volume operations.

Last year, Metallon produced 94 212 ounces of gold and its overall output ranges close to 25 percent of the total production output of Zimbabwe.

Metallon says it is now in a strong position to invest in its gold mining operations in anticipation of a

$530 million investment plan towards modernisation of all its subsidiaries in Zimbabwe.

In separate press statements released on 31 July 2018, Metallon hinted on the impending Modernisation and Labour Rationalisation program.

The How Mine expansion project is worth approximately $120 million, and is expected to increase annual production to 100,000 ounces. Mazowe Mine stands at $110 million and is projected to increase annual production to 93,000 ounces.

Redwing and Shamva projects are worth $150 million each with Redwing Mine expected to increase annual production to 200,000 ounces while Shamva is projected at 150,000 ounces.

In one of the press statements, the gold producer indicated that ‘Alongside the mine reengineering, there will be a rationalisation of labour. A number of positions will be placed on shifts or short time while reviews of operations are underway.’

All the press statements read that as a result of the modernisation programme and subsequent mechanisation of operations, the four subsidiaries were expected to reduce the number of employees in order to reduce costs, increase productivity, and ensure the long-term viability for the benefit of all stakeholders.

The four subsidiaries 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.

The restructuring program has seen Metallon Corporation CEO Kenneth Mekani stepping down after serving the London-based gold producer for 31 years as he could not relocate to London citing personal reasons. The Metallon Corporation Chief Executive Officer position will now be based in London.

Managing Directors heading each subsidiary will lead respective modernisation programs in their units. How Mine’s D. G. Gwatinetsa , Redwing’s Kimbton Chiota, Shamva Mine’s Thomas Lusiyano and Mazowe Mine’s Joseph Chifamba will lead the modernisation program together with experienced teams in their respective divisions.

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