Me­tal­lon di­vi­sion­alises oper­a­tions

Sunday News (Zimbabwe) - - Business News - Du­misani Nsingo Se­nior Busi­ness Re­porter

THE coun­try’s largest gold pro­ducer, Me­tal­lon Cor­po­ra­tion’s four min­ing oper­a­tions will this week start run­ning as sep­a­rate en­ti­ties as part of the com­pany’s re­struc­tur­ing process aimed at im­prov­ing ef­fi­ciency and pro­duc­tion at its mines.

An in­ter­nal no­tice seen by Sun­day Busi­ness noted that the com­pany’s four mines namely Bu­l­awayo Min­ing Com­pany, Shamva Gold­fields, Ma­zowe Gold­fields and King’s Daugh­ter Min­ing Com­pany would start op­er­at­ing as sep­a­rate en­ti­ties on Fri­day.

“Due to the need for mines to op­er­ate as stand-alone busi­ness units, each hav­ing its own Board of Di­rec­tors, the com­pany has had to re­struc­ture and in light of that, the com­pany is pleased to an­nounce the ap­point­ment of man­ag­ing di­rec­tors-des­ig­nates and fi­nance di­rec­tors-des­ig­nates . . . with ef­fect from 1 Septem­ber 2017,” read part of the no­tice.

Mr De­mand Gwatinetsa and Mr Al­pha Ma­tum­bura would be Bu­l­awayo Min­ing Com­pany’s man­ag­ing di­rec­tor and fi­nance di­rec­tor re­spec­tively, Mr Kimbton Chiota and Mr Tavepi Dafana would run King’s Daugh­ter Min­ing Com­pany as the man­ag­ing di­rec­tor and fi­nance man­ager re­spec­tively and Mr Daniel Cha­tora and Mr Sam­son Pun­zisani would over­see oper­a­tions at Gold­fields of Shamva and Gold­fields of Ma­zowe as man­ag­ing di­rec­tor and fi­nance di­rec­tor re­spec­tively.

The com­pany said the re­struc­tur­ing of its busi­ness was part of its strat­egy to in­crease ef­fi­cien­cies and meet­ing its growth tar­gets.

“As part of this re­struc­tur­ing ex­er­cise, each of Me­tal­lon’s four op­er­at­ing mines will now op­er­ate as sep­a­rate en­ti­ties. By mak­ing the mines stand­alone oper­a­tions, Me­tal­lon will in­crease ef­fi­ciency and al­low each mine to man­age its own as­sets and oper­a­tions more ef­fec­tively.

This is an on­go­ing ex­er­cise and Me­tal­lon will up­date stake­hold­ers on any ma­te­rial de­vel­op­ments in due course,” it said.

In February Me­tal­lon Cor­po­ra­tion re­ported an an­nual pro­duc­tion of 94,212 ounces (oz) for 2016, two per­cent lower than the 96,530oz achieved pre­vi­ously af­ter a poor fourth quar­ter.

The miner missed its re­vised tar­get of 102,000oz, fol­low­ing de­lays in the con­struc­tion of the new pro­cess­ing plant at Ma­zowe Mine and sched­uled ramp up at Red­wing Mine. It also said a ground fall at its largest op­er­a­tion, How Mine in December had im­pacted on pro­duc­tion. It was forced to re­vise its tar­get for this year fol­low­ing ex­ces­sive rain­fall which ham­pered pro­duc­tion in the first quar­ter.

“We are un­able to give fore­casts. How­ever, as re­ported in pre­vi­ous up­dates, we have had to re­vise our tar­gets due to the im­pact of flood­ing at some of our oper­a­tions be­cause of ex­ces­sive rain­fall in the first quar­ter, and the post­pone­ment of the com­mis­sion­ing of the Ma­zowe Pro­cess­ing Plant as a re­sult of equip­ment de­lays. Full de­tails on cur­rent oper­a­tions will be dis­closed in our next pro­duc­tion re­port,” said the com­pany.

The com­pany has how­ever, com­mis­sioned its Ma­zowe pro­cess­ing plant and in the process of con­struct­ing two tail­ing dams.

“De­spite the tough op­er­at­ing en­vi­ron­ment, Me­tal­lon re­mains fo­cused on re­source de­vel­op­ment across the group as a way of se­cur­ing the fu­ture of all our mines in Zim­babwe. A new pro­cess­ing plant at Ma­zowe, in which Me­tal­lon in­vested over $18 mil­lion, has now been com­pleted and is now be­ing com­mis­sioned. In ad­di­tion, two tail­ings dams are be­ing built at Shamva and Ma­zowe to world class stan­dards,” said the com­pany.

It has also em­barked on a shaft deep­en­ing pro­ject at How Mine in an ef­fort to en­hance its gold ex­trac­tion ef­forts.

“We are pleased to re­port that at How Mine in Bu­l­awayo, we have em­barked on a shaft deep­en­ing pro­ject so as to ac­cess re­sources be­low 28 level at the mine. This in­vest­ment is de­signed to se­cure fu­ture pro­duc­tion at the mine. We are pleased with the progress that this pro­ject is mak­ing so far,” said the com­pany.

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