HARARE, August 8 – Zimbabwe’s largest gold producer Metallon says it is planning to plough $350 million in modernising its operations as a low cost miner and boost productivity.
Metallon operates four mines — How Mine, Mazowe, Redwing and Shamva and 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.
The mines were last year unbundled into stand-alone operations in a restructuring exercise which it said will increase efficiencies as it aims to become a 500,000 ounces per annum producer by 2021.
“The mines will be undergoing a significant modernisation and investment programme in order to introduce mechanisation and commence volume mining and mining at surface,” said the company in a statement.
For Mazowe, the miner will suspend underground mining until 2020 while production takes place from the newly commissioned 60,000 tonnes per sands plant. Expansion will cost $110 million to raise production to 93,000oz annually.
“In 2019 a crushing circuit will be installed to convert the sands plant to process hard ore. Underground mining will resume in 2020, ramping up to capacity of 65,000 tonnes per month by 2021. Alongside these operational changes a comprehensive surface and underground exploration will be ongoing,” it said.
How Mine is undergoing shaft deepening which will enable mining at depth while hoisting capacity will be increased to 75,000 tonnes per month and the current processing plant will be upgraded to match the capacity by 2020.
“In 2020 a 100,000 tpm sands processing plant will be constructed to process surface ore. Alongside these upgrades, a comprehensive underground and surface exploration drilling program will be carried out. New Tailings Storage Facilities and infrastructure upgrades will also be required.”
The project will cost $120 million and will increase annual production to 100,000oz.
At Shamva, the mine will also suspend underground mining while a redesign and development of underground operations takes place but opencast operations will continue. The redevelopment will cost $150 million and raise output to 150,000oz annually.
Metallon said the modernisation thrust will ‘ensure the long-term viability of the mines’ with a significant reduction in costs while an unspecified number of full time jobs will be placed on shifts or short time contract.
In December last year, the miner announced that it had sold off its Arcturus mine to Tawanda Nyambirai’s investment company, TN Securities at an undisclosed price.
- Equity Axis News
