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Metallon Gold restructures

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ZIMBABWE’S largest gold producer, Metallon Gold, is restructuring its business, where each of the four operating mines will now operate as separate entities, as part of a strategy to increase efficiencies and meet growth targets.

BY TARISAI MANDIZHA

Metallon runs four mines — How Mine, Mazowe, Redwing and Shamva.

Each of these mines is now operating under separately registered companies, namely Bulawayo Mining Company, Goldfields of Mazowe, King’s Daughter Mining Company and Goldfields of Shamva, respectively.

In a statement yesterday, the company said the measures were meant to increase efficiencies and allow each mine to manage its own assets and operate more effectively.

“As the country’s leading gold producer, Metallon has a duty to invest in production and help meet national gold output targets. Metallon has an ambitious plan to increase gold production,” Metallon chief executive officer Ken Mekani said.

“As part of that plan, we had a thorough evaluation of our structure and operations. One of our key findings was that, in order for us to efficiently exploit our assets in the future, we require each mine to focus clearly on managing their own operations.”

Mekani said re-organising the group would “allow each operation to manage and exploit the vast potential of our assets more efficiently”.

By empowering each mine, he said, they were making the company stronger as a whole.

The companies would have their own boards and management that assume all responsibilities over operations and suppliers, thereby, reducing bureaucracy and bringing renewed focus across the group.

The group said the re-organisation is a continuing exercise and stakeholders will be updated on material developments as necessary.

Metallon has a world-class gold resource of over 8,3Moz.

How Mine, near Bulawayo, is the flagship mining operation and produces over 55% of production.

Shamva and Mazowe Mines produce approximately 22% and 13%, respectively, and Redwing Mine is currently ramping up production.
Gold production in 2016 was 94 212 ounces and the budget for 2017 is 115 000 ounces.

According to the group, Metallon is targeting on increasing gold production significantly through ambitious expansion plans across all Zimbabwean operations and developing gold mines in Tanzania.

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