ZIMBABWE’S largest gold mining group, Metallon Gold is targeting to increase its gold production by 22% by year-end driven by increased capacity utilisation, a company official has said.
BY TARISAI MANDIZHA
The company produced 94 000 ounces of gold last year and expects 115 000 OZ in 2017.
Speaking at the Buy Local Summit and Investment Forum in Victoria Falls recently, general manager for operations, Kimbton Chiota said gold accounted for half of all mineral exports in 2016 in terms of revenue, up from 40% the previous year.
“We produced 94 000 ounces of gold last year and this year we are aiming even higher, targeting to produce 22% increase from what we did last year,” he said
Chiota said in 2016 gold production earned $1,8 billion, a 50% increase from last year.
He said in 2016, the gold industry was operating at 79% capacity utilisation from 77% in 2015.
“There is huge growth expected this year, in 2016 capacity utilisation grew to 79% from 77% in 2015 showing there is significant potential for growth,” Chiota said.
He said there is a huge procurement opportunity in the gold industry, as currently, companies are relying on imports as locally there is no production.
The Chamber of Mines State of the Mining Industry Survey Report 2016 shows that around 78% of capital goods are sourced off–shore due to lack of local capacity.
Seventy percent of mining inputs are procured locally, with 15% of this coming from local manufacturing.
“Increased capacity utilisation and expansion converts into high uptake of consumables. Suppliers received 48% of the total gold revenues for the supply of goods and services in 2016. Consumables accounted for 29% of total costs,” reads the report.
Metallon owns and operates four gold mining operations.
How Mine near Bulawayo, the group’s flagship, produces over 50% of the group’s output.
Metallon focused on increasing gold production by improving mining operations and through an ambitious expansion project across all operations with a target to produce 500 000 ounces per annum.