METALLON Gold has invested US$33 million in the reopening of Redwing Mine and deepening of How Mine in a fresh bid to resuscitate its business empire.
The decision by the Mzee Khumalo-run entity to reinvest in the two mines follows the arrest of Redwing Mine judicial manager Cecil Madondo on fraud charges after he allegedly duped investors of about US$260 000 in a botched deal.
Moreover, Metallon Gold is riding on firming gold prices on the global market.
“Metallon has mapped out its structure and Redwing Mine’s first step would be dewatering and repair of mineshafts as well as the plant. How Mine will see attention being directed towards shaft redeepeing as a way of getting access to more ore and extend the life of the mine,” a Mettalon official said.
“The company has raised US$33 million fresh capital for these programmes after having sold Mazowe and Shamva Gold mines. How and Redwing mines are expected to produce four tonnes of gold per annum which is significant towards meeting government’s target,” the official said.
The reopening of Redwing Mine and revamping of How Mine comes at a time works at Eureka Gold Mine are nearing completion, Pickstone Mine has also hit the heights while Blanket Mine numbers are encouraging.
Kuvimba Mining House, which is a joint venture between government and international partners, is confident of producing 30 tonnes per annum of the yellow metal in the next three years.
“We are still positive of achieving the set targets, we will continue to invest in the economy considering the favourable operating economic environment,” said Kuvimba Mining House chief executive David Brown.
Kuvimba has played an important role in the transformation of the mining industry following the reopening of abandoned shafts which will contribute immensely to the sector’s growth projections.
Stakeholders in the industry are upbeat with the re-entry of Metallon Gold in the sector.
“We are excited by the gold production outlook and the levels of investment are very exciting. This also means production numbers will be increased probably in the next few years,” a Chamber of Mines Zimbabwe executive said. Newsday