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Tinashe Makichi Business Reporter
Metallon Zimbabwe says Gold production for the first quarter to March 2015 came in 8 percent higher at 24 385 ounces against the same period last year, but 15 percent below the target of 28 654 ounces. Metallon said the gold production shortfall for the first quarter of 2015 was mostly due to equipment breakdowns (hoist, crushers and mills).

“This is being addressed through a phased equipment replacement programme. New locos and crushers have been ordered for Arcturus Mine and a 4 1/4 crusher is also to be ordered for Mazowe mine,” said the gold mining group.

There were some highlights during the quarter, with How Mine milling an all-time record tonnage of 32,130 tonnes in March 2015. Throughout the first quarter Metallon has been focused on increasing production to full capacity at all mining its operations and commencing work on new projects that will ramp up further production.

The group’s C1 costs and all-in-sustaining costs for Q1 2015 were $772 and $1 007 per ounce respectively.

There has been a significant improvement on costs from the first quarter of 2014. As production and cost efficiencies improve throughout the year, Metallon expects these costs to reduce further.

Metallon’s gold production guidance for 2015 remains approximately 150 000 ounces and all-in-sustaining costs of approximately $970 per ounce are expected in 2015.

“There have been some challenges in production during the first quarter due to equipment breakdowns; however these issues have been addressed through the equipment replacement programme. Despite this we have still seen an improvement in production of eight percent from Q1 2014 and work has advanced with our new projects,” said Metallon chief executive and deputy chairman Mr Mzi Khumalo.

He said in the second quarter of 2015 the company looks forward to continued improvement in production and further progress in projects implementation.

Mr Khumalo said Metallon remains committed to a reduction of costs and remaining a low cost gold producer.

Metallon has also commenced its Sands Retreatment Project at Mazowe Mine and has appointed engineering company, Baldmin Engineering from South Africa to build a 60 000 tonne per month plant.

The mining group said fabrication of the plant is underway at the factory in South Africa, and is approximately 50 percent complete.

Metallon said civil engineering work at Mazowe mine commenced in March this year and plant erection is scheduled for the next two months.

“Construction of civil engineering work at Mazowe Mine commenced in March 2015 and plant erection on site will commence in early June 2015, taking two months to complete. Commissioning of the plant is expected in September 2015,” said the company.

In March 2015, Metallon also appointed Fraser Alexander to construct new tailings dams at Shamva Mine and Mazowe Mine.

Construction of the tailing dams will be in stages, with commission of the first stage six weeks after construction has begun.

At Redwing Mine, which is currently under-development, development works above six level have commenced and plant refurbishment work is to commence in the second quarter.

Metallon appointed KBA (Pvt) Ltd as New Projects Co-ordinator while KBA (Pvt) Ltd will be working closely with the Metallon new projects team in Zimbabwe on the 2015 implementation programme.

The mining group said key areas of project management will be the new Sands Retreatment Plant at Mazowe Mine, the Mazowe Plant and Underground Upgrade and new Tailings Dams at Mazowe and Shamva Mines. Another key focus will be bringing Redwing Mine back into production through Mine Dewatering and Plant and Underground Refurbishment.