Zimbabwe’s largest gold producer Metallon Corporation has embarked on a restructuring exercise as the group sees gold output rising to 500 000 ounces per annum by 2019 from this year’s target of 100 000 oz.
Metallon head of communications Klara Kaczmarek said that the mining group would also convert its current mining claims into leases as part of the restructuring programme.
According to the latest government gazette, Metallon has applied for mining leases for its two mines Arcturus and Shamva. The mining group also owns How, Mazowe and Redwing mines.
“Metallon is internally restructuring the group business and each mine entity in order to improve efficiencies and to consolidate our assets. As part of this restructuring at Shamva and Arcturus, Metallon is converting current mining claims into mining leases,” Kaczmarek said in a written response to questions.
“As you are aware Metallon is planning on increasing gold production to over 500 000oz per annum by 2019. We are currently reviewing all our mining operations and will be putting together budgets for where capital will be spent for maximum results. In addition, all our expansion plans will require detailed feasibility studies by independent consultants with capital expenditure to be determined in due course.”
The low cost gold miner is also planning to develop two new projects – Motapa and Midwinter – as well as some mines in the Democratic Republic of Congo and Tanzania.
South Africa’s businessman Mzilikazi Khumalo acquired the former Lonrho business in 2002. In 2005 production peaked to 156 000oz making Metallon the country largest gold producer.-The Source