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Gold producer Pan African Mining is on the verge of collapsing owing to lack of funding to recapitalise. The company, which operates Ashyre and Muriel mines in Mutorashanga has in the past few months struggled to pay workers’ salaries on time. Earlier this year, the power utility ZESA holdings disconnected electricity to the two mines over an unpaid bill which was close $1 million.
Workers who requested anonymity told New Ziana Pan African Mining is under performing.

“The challenge is the firm is not producing good volumes of gold anymore. Workers committee and management who a meeting three days ago had said the owners of the firm have said they would put workers on forced leave until operations stabilises.”

“They said the mine will, however, shut down due to failure to reach a target of 7,7kg of gold next month and 8,8kg the following month. This is impossible since we are getting around four kg every month.”

“There are no spares and the plant is never serviced hence there are always breakdowns at the mines resulting in the low production,” said one worker.

The workers allege that management misused funds meant for recapitalisation.
“Two months ago the mining firm acquired a $11,5 million loan from a Hong Kong-based company after it had borrowed another $5 million loan from a local bank to recapitalise the firm but the funds were mismanaged.”

“The recapitalisation process was estimated to be less or around $5 million so the other $10 million was mishandled.
“However, shareholders will next Monday be coming for a feedback on how the money was spent,” the workers said.
Reports also say that the organisation’s chief executive Peter Traquino has since resigned.

Efforts to reach Pan Africans’ managing director Victor Gapare were fruitless as he was said to be out of the country.
In 2013, the country’s gold output marginally fell by two percent to 12,66 tonnes from about 14 tonnes after the Government banned all mining activities along river banks to halt environmental degradation. — New Ziana.