Metallon to increase gold output by 30 percent this year


0

Zimbabwe’s largest gold producer Metallon Corporation sees bullion output up 30 percent on last year’s figures to 130 000 ounces in 2015 spurred by the restart of its Redwing Mine after the company budgeted $34 million in capital expenditure.

The low cost gold miner owns How Mine, Shamva, Mazowe, Arcturus and Redwing, which is under care and maintenance. Metallon is also planning to develop two new projects – Motapa and Midwinter – as well as some mines in the Democratic Republic of Congo and Tanzania.

Metallon corporate affairs executive Zenzo Nsimbi said that the while the company marginally missed last year’s production target of 100 000oz by one percent due to power cuts and pen stock failure at Shamva mine which resulted in 5 days loss of production, output is seen rising this year.

“Production forecast for 2015 is expected to be plus or minus 30 percent of last year’s forecast, yielding 130 000 ounces from underground operations. This will be achieved by resuming operations at Redwing mine and ensuring full operating capacity for all our mines,” Nsimbi said.

“In addition the company is putting up tailings re-treatment plants at Mazowe and Shamva mines. These have been designed in line with best international practice. This program should increase production from the current forecast of 130,000 ounces to 150,000 ounces.”

Last month the group announced plans to restructure as it sees gold output rising to 500 000 ounces per annum by 2019 driven by expansion projects.

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

(50 VIEWS)

Don't be shellfish... Please SHARETweet about this on Twitter
Twitter
Share on Facebook
Facebook
Share on LinkedIn
Linkedin
Email this to someone
email
Print this page
Print

Like it? Share with your friends!

0
Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

0 Comments

Your email address will not be published. Required fields are marked *