Metallon divisionalises operations
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.